Copper prices hovered near unchanged Wednesday as investors sifted through a mix of economic data from Europe and the U.S., and few were willing to enter the market ahead of the U.S. Thanksgiving holiday.

 

Copper for March delivery, the most active contract, was recently trading 0.30 cent, or 0.1%, lower at $3.2160 a pound on the Comex division of the New York Mercantile Exchange.

 

Copper prices got a slight boost overnight after German consumer sentiment hit its highest level in more than six years on the back of a robust employment market and firm income expectations. GfK, a market research institute, said its forward-looking consumer-confidence index rose to 7.4 in December, from an upwardly revised 7.1 in November. This beat economists' forecasts of a 7.1 reading for December.

 

Investors follow economic data for clues about future copper demand, as the metal is used in everything from smartphones and laptops to construction and large factory equipment. Germany is the largest economy in Europe, which as a region is the world's second-largest copper consumer behind China.

 

However, the upbeat report was offset by data showing U.S. durable-goods orders declined more than expected in October. Demand for long-lasting factory goods fell 2% last month from September, the Commerce Department said Wednesday. Analysts expected a 1.7% drop in overall durable-goods orders.

 

Copper trading volumes on the Comex were thin as many investors in the U.S. decamped to enjoy an early Thanksgiving holiday break. The Comex floor and electronic trading will be closed Thursday in observance of the holiday.

 

"Ahead of tomorrow's Thanksgiving holiday in the U.S. and what will likely be an extra-long weekend for many, it is unlikely there will be too much in the way of fireworks aside from position-squaring activity," said Leon Westgate, a commodities strategist with Standard Bank, in a note.