Base metals at LME remained flat last week as data from China and the United States offered conflicting views about near term economic and demand prospects.
Annual economic growth data in top metals consumer China, eased to 10.3% in the second quarter from 11.9% in the first quarter. The data also showed inflation at the producer and consumer level eased in June from May, reducing the need for further policy tightening.
On the other hand, the rate of growth in the factory sector slowed sharply in July, and US wholesale prices fell for a third straight month, adding to evidence that the U.S economic recovery is losing steam.
The softer macro data dragged the US dollar to a two month low against the euro, limiting base metal's downside, as a weaker dollar tends to make dollar priced metals cheaper for non European investors.
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