Dennis Lockhart, president of Chicago Federal Reserve, argued that tapering of the US quantitative easing (QE) programme could happen before the end of year – and as early as September.
Traders will be keeping an eye on US economic updates, as a stream of positive updates could give rise to speculation that the Fed will reduce its bond-buying operation sooner rather than later.
China is also in focus as the world’s largest importer of copper. According to the latest HSBC survey, Chinese manufacturing is at an 11-month low. Chinese trade balance and inflation numbers are released on Thursday and Friday respectively, offering the latest data on imports and consumer demand.