Copper dives

Melbourne: London copper fell sharply on Monday as investors shrugged off a potential strike at the world´s largest copper mine and focused instead on a raft of economic reports that may indicate slowing growth in top metals consumer China.

"The prices of industrial metals could take a hit early in the week as we expect both the ´official´ and Caixin China manufacturing PMIs to have fallen in July," Capital Economics said in a report.

China´s official purchasing manager index (PMI) gauge, which is mostly concerned with orders at state-owned enterprises, is due on Tuesday while the Caixin report, an indicator of the health of smaller firms, will be released on Wednesday.

Growth in China´s factory sector is expected to have slowed for a second month in July amid softer domestic investment and as the worsening trade dispute with the United States clouds the outlook for external demand.