Copper reverses loss

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LONDON- Copper prices rose on Friday following the dollar’s retreat after earlier losses on shrinking factory activity in top consumer China for a fifth straight month fueled uncertainty about the demand outlook for industrial metals.

Three-month copper on the London Metal Exchange (LME) (LME) was up 0.3 percent at $8,521 a metric ton.

Weak US manufacturing data raised the prospect of US interest rate cuts, which weighed on the US currency making dollar-priced metals cheaper for holders of other currencies.

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China’s official manufacturing purchasing managers’ index (PMI) fell to 49.1 in February from 49.2 in January, with factories closed during the month for a holiday.

However, negative sentiment was tempered by the Caixin/S&P Global survey, which showed manufacturing activity of small-to-medium businesses expanded steadily as both production and new orders grew faster.

“Overall, China’s manufacturing sector still doesn’t look too healthy,” a metals trader said.

China’s ailing property sector, a major consumer of industrial metals has weighed on the market for some time. This was reinforced recently by a liquidation petition filed against property developer Country Garden. – Reuters

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