Investing.com - Copper futures inched higher on Tuesday, as weak Chinese industrial profits data reinforced views that Beijing will roll out additional support measures for the world's second largest economy.
Copper for December delivery on the Comex division of the New York Mercantile Exchange tacked on 2.0 cents, or 0.85%, to trade at $2.377 a pound during morning hours in London. A day earlier, copper rose 0.7 cents, or 0.3%.
Data released earlier showed that Chinese industrial profits slipped 0.1% from a year earlier in September, compared to an 8.8% tumble in the previous month.
Copper prices have been under pressure in recent sessions as persistent worries about future demand from top consumer China weighed.
The People's Bank of China cut its benchmark interest rate by a quarter percentage point on Friday, the latest in a series of measures aimed at stimulating economic activity and boosting growth.
It was the sixth rate cut over the past 12 months, fueling concerns that economic growth is weakening more than is currently expected.
The rate cut came several days after Chinese government data showed third-quarter economic growth slowed to 6.9%, the first time since the global financial crisis that the country’s gross domestic product has grown less than 7%.
Market players now looked ahead to the outcome of a four-day meeting of China’s top Communist Party officials later this week, amid expectations for further economic reforms.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere in metals trading, gold futures for December delivery shed $1.00, or 0.09%, to trade at $1,165.20 an ounce, as investors remained cautious ahead of the Federal Reserve's two-day monetary policy meeting due to begin later in the day.
Meanwhile, the U.S. is to release data on durable goods orders at 8:30AM ET on Tuesday, as investors look for fresh readings on the strength of the economy.
The report is expected to show that orders for durable goods declined 1.2% in September, following a drop of 2.3% a month earlier, while core orders are forecast to rise 0.1% after falling 0.2% in August.
Market players have been trying to gauge when the Fed will raise interest rates for the first time in nearly a decade after recent economic reports offered a mixed picture of the U.S. economy.
The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.