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PrintReuters reported that London copper edged up nudged higher by hopes for more stimulus measures from China after a government think tank official said the country must crank up pro-growth policies over the next three months or risk missing its annual growth target.
Mr Zheng Xinli vice chairman of the China Centre for International Economic Exchanges said that Beijing must boost investment growth, preferably by raising spending on the country's high speed rail network, to stop a slide in economic growth that is running into a seventh straight quarter.
China is the world's top copper consumer accounting for more than 40% of refined demand last year. Moves to reinforce economic growth, especially through investment in commodities-intensive infrastructure would lift copper's demand prospects.
Also supporting sentiment was Tuesday's data on U.S retail sales, which rose in July for the first time in four months signalling that consumers could drive faster economic growth in the Q3. Three month copper on the London Metal Exchange had ticked up 0.2% to USD 7,427.75 per tonne by 0726 GMT after a gain of 0.3% in the prior session.
A Shanghai based trader said that "It is another quiet day with few trading cues which is why copper prices haven't moved much. But some people believe the Chinese government will introduce fresh easing or stimulus policy soon and this may have encouraged some buying."
Mr Wang Tao Reuters analyst said that the most active November copper contract on the Shanghai Futures Exchange edged up 0.1% to CNY 54,690 per tonne with gains partly capped by investors shifting their positions from November to December. Technical charts show more downside room for copper.
Mr Tao said that "Shanghai copper may re attempt to reach CNY 53,900 per tonne as the range of CNY 53,900 to CNY 55,410 looks like a continuation pattern."
Lingering worries over the euro zone economy will also cap prices, especially after it shrank in the second quarter having been flat in the first despite continued German growth that economists fear could soon be snuffed out.
In Spain, which may be in danger of needing a sovereign bailout, Prime Minister Mr Mariano Rajoy vowed to prolong a program of benefit payments to the long term jobless which bodes ill for planned multi billion euro spending cuts.
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