Key commodities fall, China growth recovery caps losses
The International Monetary Fund (IMF) and finance ministers from the euro zone seek to announce the second bailout package for Greece on Monday, but they will first have to agree if some of the country’s official loans might eventually be waived to reduce its debt. Although German chancellor Angela Merkel and French finance minister have spoken positively about sealing a deal, investors were cautious after wagering on risky assets such as commodities last week.
However, latest data showing China's manufacturing sector posted growth and expanding factory activity signalled the world's top metals consumer is rebounding after seven straight quarters of slowdown. This has prevented any slump in commodity prices. Investors are now focussing on China’s official purchasing manufacturers' index (PMI) due later this week, for further confirmation of the trend.
Three-month copper on the London Metal Exchange fell $2.5 to $7,774.50 a tonne by 1135 GMT on Friday. Prices have risen nearly 3% over the last fortnight, as investors bet China, which accounts for around 40% of the world's refined copper demand, would pursue growth vigorously after the leadership transition earlier this month. However,
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