Copper settled -2.08% down at 396.10 fell to the lowest level in nearly ten months after official data showed that Chinese first quarter growth came in below expectations, adding to concerns over the outlook for global growth. Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing. The Chinese economy expanded 7.7% in the first quarter from a year earlier, missing expectations for growth of 8% and slowing from a 7.9% increase in the preceding quarter. A separate report showed that industrial production in China rose 8.9% in March, worse than expectations for a 10% increase and following a 9.9% rise the previous month. The weaker than expected data fuelled concerns that China's economic recovery was stalling, quashing any hopes of a robust recovery in copper demand from the world's largest consumer. The batch of disappointing Chinese economic reports came after U. S. data showed that retail sales fell 0.4% in March, the largest decline in nine months and missing expectations for a 0.1% increase. The downbeat data reduced hopes for higher copper demand in the U. S., the world's second largest user of the industrial metal. Metal purchases by Chinese consumers have been subdued so far this year as rising stockpiles and doubts about the pace of growth have hit demand in the country. In yesterday's trading session copper has touched the low of 386.6 after opening at 402.65, and finally settled at 396.1. For today's session market is looking to take support at 387.6, a break below could see a test of 379.1 and where as resistance is now likely to be seen at 403.6, a move above could see prices testing 411.2.

Trading Ideas:

Copper trading range for the day is 379.1-411.1.

Copper dropped after official data showed that Chinese first quarter growth came in below expectations.

Industrial output in March also undershot expectations and added to investor sensitivity after a negative reading of U. S. consumer sentiment.

Shanghai copper stocks fell by 13,653 tonnes from around 10-year highs, while LME copper stocks were at their highest since September 2003