Copper falls as China’s July output, retail sales miss forecasts

Disappointing Chinese economic data for July sent copper prices lower and dragged on European equities on Monday, as weaker-than-expected industrial output and retail sales figures renewed concerns about demand from the world's largest metals consumer.

Weak Numbers From Beijing

China's National Bureau of Statistics reported on Monday that industrial output rose 4.5% year-on-year in July, slowing from 5.3% growth in June and missing the 4.8% forecast in a Reuters poll of 26 analysts. Retail sales grew just 0.6%, a sharp deceleration from 1% in the prior month and well below the 1.5% increase economists had expected.srnnews+2

Factory output was likely hampered by unusually active extreme weather last month, with three typhoons making landfall and millions of people relocated across China's eastern and southern manufacturing hubs. The retail slowdown came despite summer holiday tourism spending, suggesting persistent weakness in domestic demand.srnnews

Copper and Commodities Under Pressure

Copper fell on the data, with prices dropping to around $6.57 per pound on Monday as traders reassessed demand prospects from China, which accounts for roughly half of global copper consumption. The selloff reflected broader anxiety about China's growth trajectory and the fading impact of state policies aimed at boosting consumption.tradingeconomics+1

A stalemate in Middle East ceasefire negotiations added to the cautious tone across commodity markets, according to Reuters.tradingview

European Equities Feel the Drag

European stocks edged lower on Monday as the soft China data weighed on investor sentiment. Mining and resources stocks, which are heavily exposed to Chinese demand, were among the biggest decliners. The pullback came after European benchmarks including the STOXX 600 had been trading near record highs earlier in August.kelo

The data has intensified debate among economists over whether Beijing will need to roll out additional stimulus measures to stabilize growth in the second half of the year.