Copper edged lower nearly by -0.41% to settled at 409.85 as appetite for riskier assets weakened following the release of disappointing Chinese manufacturing data. Data released earlier showed that China’s final HSBC PMI ticked down to 48.1 in April from a preliminary reading of 48.3 and below expectations for a reading of 48.4. The report indicated that China’s manufacturing sector contracted for the fourth consecutive month in April, underlining concerns that an economic slowdown in the world’s second-largest economy is deepening. Meanwhile, market players continued to assess a report showing that the U.S. economy added jobs at the fastest pace in more than two years in April, but also showed weaker earnings growth and a drop in labor force participation. The Labor Department reported Friday that the U.S. economy added 288k jobs in April, well above expectations for jobs growth of 210k. The U.S. unemployment rate dropped to a 5-and-a-half year low of 6.3%, compared to expectations for 6.6%. But optimism was tempered after the report also showed that the labor force participation rate, which measures the proportion of people either working or looking for work, fell to 62.8% from 63.2% in March. Investors continued to monitor events in Ukraine, as hostilities between Kiev and Russia remain high. Clashes between Ukraine's army and pro-Russian forces broke out in six cities in eastern Ukraine over the weekend, stoking fears that the crisis will develop and drag the U.S. deeper into the standoff. Technically market is under fresh selling and getting support at 408.8 and below same could see a test of 407.7 level, And resistance is now likely to be seen at 411.8, a move above could see prices testing 413.7.

Trading Ideas:

Copper trading range for the day is 407.7-413.7.

Copper dropped as appetite for riskier assets weakened following the release of disappointing Chinese manufacturing data.

Demand for copper in China improved in the past month, boosted by a shortfall of metal in the domestic market and steady second-quarter consumption.

China’s final HSBC Purchasing Managers Index ticked down to 48.1 in April from a preliminary reading of 48.3