Copper settled -0.28% down at 438.80 as appetite for growth linked assets weakened amid fears over the outlook for the global economy, while uncertainty over the timing of a Spanish bailout lingered. Market participants also looked ahead to Friday’s crucial US non-farm payrolls data, as well as the ECB’s forthcoming policy meeting on Thursday. Data released earlier showed that China’s services PMI fell to 53.7 vs 56.3, underlining concerns over a deeper than expected slowdown in economy. Market continued to focus on developments in Spain after PM Mariano Rajoy ruled out a bailout request before this weekend, despite persistent speculation that Madrid was moving closer to requesting external financial aid. Markets have been anticipating for the past month that the Spanish government would ask for a full-scale sovereign bailout. A bailout would allow the ECB to step in and buy Spanish sovereign debt, which would result in reduced borrowing costs for the debt-strapped nation. Meanwhile, Moody’s said it was still reviewing Spain's finances for a possible credit downgrade. Moody’s said in August its review on Spain’s Baa3 rating would continue through the end of Sept. For today's session market is looking to take support at 437.4, a break below could see a test of 435.9 and where as resistance is now likely to be seen at 440.6, a move above could see prices testing 442.4.

Trading Ideas:

Copper trading range for the day is 435.9-442.5.

Copper dropper as weak data from Europe and China reinforced concerns about the outlook for industrial metal demand

Market looked ahead to Friday’s crucial US non-farm payrolls data & ECB’s forthcoming policy meet.

China’s services PMI fell to 53.7 vs 56.3 underlining concerns over a deeper than expected slowdown.