Base Metals Preview: COMEX Copper Off One Month Top

6 Apr 2022 , 08:57 AM

COMEX Copper had hit a one month high in last session on worries over Russian supplies but flipped back thereafter amid weakness in US equities. Mostly supportive economic cues capped losses though. After reporting a slowdown in the pace of growth in US service sector activity over the past few months, the Institute for Supply Management released a report on Tuesday showing growth in the sector reaccelerated in the month of March. The ISM said its services PMI rose to 58.3 in March from 56.5 in February, with a reading above 50 indicating growth in the sector. The rebound by the headline index came as the new orders index jumped to 60.1 in March from 56.1 in February. The business activity index also crept up to 55.5 from 55.1. The Eurozone economy maintained growth momentum in March with the easing of COVID-19 restrictions, final survey results from S&P Global showed on Tuesday. The final composite output index posted 54.9 in March, a slight decline from 55.5 in February. The flash reading was 54.5. Despite strong inflationary pressures, the UK service sector grew the most in ten months in March as the removal of pandemic restrictions and return to offices had led to a sharp rebound in customer demand, final survey data from S&P Global showed on Tuesday. The Chartered Institute of Procurement & Supply services Purchasing Managers Index rose to 62.6 in March from 60.5 in February. COMEX Copper currently trades down 0.41% at $4.74 per pound amid weak Asian equities and could see a further downside movement if Chinese Covid-19 worries escalate.

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