HANOI: London copper prices headed towards the psychological level of $8,000 a tonne on Tuesday, as solid manufacturing data from major economies and a stronger yuan boosted sentiment.

Three-month copper on the London Metal Exchange advanced 0.7% to $7,916 a tonne by 0350 GMT, while the most-traded February copper contract on the Shanghai Futures Exchange dipped 0.1% to 58,020 yuan ($9,022.21) a tonne.

China, the United States and Europe showed expansion in their factory activities in December, signalling some economic recovery from coronavirus-induced slumps.

Meanwhile, China's central bank lifted its official yuan midpoint by the most since it abandoned a decade-old peg against the dollar in 2005, boosting risk sentiment and making greenback-priced metals cheaper to holders of the yuan.

China is the world's biggest metal consumer.