Copper near two-week low

Reuters

Melbourne

London copper was stuck near two-week lows on Thursday, as a stronger dollar prompted commodity markets to take a breather after April´s broad-based rally, while a deteriorating technical picture pointed to further consolidation.

Chinese data showing factory activity in the world´s top metals consumer shrank for a 14th consecutive month has muddied the outlook for metals demand and dulled hopes of economic revival after a credit-fuelled rally.

Data due in coming weeks is expected to show China´s economic activity moderated in April after a strong showing in March, adding to questions over whether the world´s second-largest economy is recovering, a Reuters´ poll of economists showed.

"You take all these bits and pieces from China that oil has gone too far and has a reversal in the making, and you have all these things lined up for commodities to fall again," said Dominic Schnider of UBS Wealth Management in Hong Kong.