Base Metals Preview: Copper tumbled as China manufacturing PMI slips into contraction

COMEX copper tumbled in Tuesday morning trades following a sharp rally by nearly 4% in the previous session. Broad weakness in dollar and recovery in overnight equities were negated by weak data from China. The Caixin Manufacturing PMI fell to 48.3 in May, its lowest since September 2022 and the first contraction in eight months. Output contracted for the first time in 19 months, falling at the fastest pace since November 2022. Meanwhile, new orders fell for the first time in eight months, and at the sharpest pace since September 2022, data revealed. Copper futures are currently seen trading at $$4.75 per pound, down more than 2% on the day.

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