Copper futures hit 7-day high after euro zone, China PMI data

Investing.com - Copper futures rose sharply to hit a seven-day high on Monday, as the U.S. dollar weakened after data indicated that the slump in the euro zone's manufacturing sector is easing.On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.335 a pound during European morning trade, up 1.3% on the day.New York-traded copper prices rose by as much as 1.6% earlier in the session to hit a daily high of USD3.347 a pound, the strongest level since May 23.In the euro zone, data showed that May's manufacturing purchasing managers' index improved to 48.3 from 47.8 in April.Germany's manufacturing PMI was revised up to 49.4 in May from a final reading of 48.1 in April and above the preliminary reading of 49.0.Elsewhere in Europe, the U.K. manufacturing PMI rose to 51.3 in May; the fastest rate of growth in 14 months, while April's reading was revised up to 50.2 from a preliminary estimate of 49.8.Meanwhile, in Switzerland, the SVME purchasing managers' association and Credit Suisse said that its PMI rose to 52.2 last month from 50.2 in April, beating expectations for a reading of 50.9.Europe as a region is third in global demand for the industrial metal.The industrial metal was also boosted after official data on Sunday showed that China's manufacturing purchasing managers' index to rose to 50.8 in May from 50.6 in April.This offset data on Monday showing that China's final HSBC PMI fell to 49.2 in May from a flash reading of 49.6 and down from 50.4 in April.China is the world's largest copper consumer, accounting for almost 40% of world consumption last year.The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, declined 0.25% to trade at 83.11.A weaker dollar boosts demand for raw materials as an alternative investment and makes dollar-priced commodities cheaper for holders of other currencies.Elsewhere on the Comex, gold for August delivery eased up 0.2% to trade at USD1,396.15 a troy ounce, while silver for July delivery added 0.65% to trade at USD22.38 a troy ounce.
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