Copper rises on positive China manufacturing news

<p>Copper has climbed on the London Metal Exchange thanks to China’s improved manufacturing output.</p>

Copper has made gains on the London Metal Exchange this afternoon (January 25th), after official figures revealed China's factory sector output is gaining pace.

HSBC revealed that manufacturing in the world's second-largest economy is recovering after a slowdown in production last year.

The bank's purchasing managers' index (PMI) was 51.9, compared to the 51.5 reading in December, which indicates the sector's activity is speeding up.

Furthermore, the Chinese economy expanded by 7.9 per cent in the fourth quarter of 2012 after slowing in the previous seven periods, according to government data.

"Despite the still tepid external demand, the domestic-driven restocking process is likely to add steam to China's ongoing recovery in the coming months," said chief China economist at HSBC Qu Hongbin.

At 16:25 GMT, Copper Cash Official appreciated by 0.3 per cent to $8059.75 per tonne, while aluminium, lead, tin and zinc all gained ground on the metal exchange too.

Find out about commodities trading and learn CFD strategies at City Index. 

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.