Copper settled flat as concerns about growth in China weighed on the outlook for industrial metals demand. Uncertainty about the growth outlook in China, the world's biggest copper consumer, is likely to dictate the price direction for the metal used in power and construction. China's final reading of the HSBC manufacturing purchasing managers index (PMI) for July is due next Thursday, followed by the HSBC services PMI on Aug. 5. Losses in copper prices were stemmed by a drop in the dollar against a basket of currencies to a five-week low, on caution about the possibility of the U. S. Federal Reserve delivering a downbeat message after its policy meeting next week. Copper also found some support from data which showed that copper stocks held in LME warehouses dropped by 1,775 tonnes , as inventories continue their steady decline from 10-year highs hit in June. Base metals prices were affected by concerns over China's demand. The list of outdated capacity elimination in 19 industries was released, and the market was concerned slower Chinese economic growth and sliding manufacturing will reduce demand for base metals. Besides, investment banks are selling spot base metals, and JP Morgan announced last Friday it would seek for strategic substitute for spot commodity business, including selling and quitting spot commodity business, or implement strategic cooperation with those business, which pushed down base metals prices. Now Copper is getting support at 407.5 and below same could see a test of 406.6 level, And resistance is now likely to be seen at
408.9, a move above could see prices testing 409.4.

Trading Ideas:

Copper trading range for the day is 406.6-409.5.

Copper settled flat as concerns about growth in China weighed on the outlook for industrial metals demand.

China's final HSBC manufacturing purchasing managers index (PMI) is due on Thursday, followed by the HSBC services PMI on August 5.

Copper found some support from data showed that LME stocks dropped, as inventories continue their steady decline from 10-year highs hit in June.