Base Metals Preview: MCX Copper Up Around 2%

2 Feb 2022 , 09:01 AM

COMEX Copper futures spiked in last session as a bounce from five week lows extended amid mostly supportive economic cues and a deep slide in the US dollar index. The US manufacturing activity continued to slow in the month of January, the Institute for Supply Management revealed in a report on Tuesday. The ISM said its manufacturing PMI fell to 57.6 in January from a revised 58.8 in December, although a reading above 50 still indicates growth in the sector. The Commerce Department said construction spending edged up by 0.2% to an annual rate of $1.640 trillion in December after climbing by 0.6% to a revised rate of $1.637 trillion in November. The uptick in construction spending came as spending on private construction advanced by 0.7% to an annual rate of $1.293 trillion. Spending on residential construction soared by 1.1% to a rate of $810.3 billion, while spending on non-residential construction was virtually unchanged at $482.6 billion. The eurozone manufacturing sector regained momentum in January with faster growth in production, new orders and employment, final survey data from IHS Markit showed on Tuesday. The manufacturing Purchasing Managers Index rose to a five-month high of 58.7 in January from 59.0 in December. COMEX Copper futures spiked by more than 2% despite choppy movement in the US equities and broke above $4.40 per pound. MCX Copper futures closed at Rs 750 per kg, up around 2% on the day.

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