Economic growth falling to its slowest pace in 24 months in the top copper demanding nation reduced the price of the industrial metal's futures, according to Bloomberg.
Less than half of the 70 cities in China monitored by the government saw prices of houses increase for a second consecutive month in September and copper is used in the construction of houses. The third quarter saw China's gross domestic product gain slightly more than 9 percent as compared to one year prior, marking the slowest increase since 2009, according to the Asian nation's bureau of statistics.
"It's mostly on GDP data," analyst Daniel Briesemann with Commerzbank in Frankfurt told Bloomberg. "The Chinese economy expanded in the third quarter somewhat weaker than expected. The downward trend of past quarters thus continues, although a 'hard landing' is still not in sight."
At 8:28 a.m. on Tuesday, copper futures decline 2.95 percent, a 9.95 cent fall to $3.2785 per pound.
Reuters reports Chinese production of steel and power also slipped during the third quarter, which augments preoccupations about economic concerns in the euro zone.
Risk Disclosure
This material is conveyed as a solicitation for entering into a derivatives transaction.
This material has been prepared by a Daniels Trading broker who provides research market commentary and trade recommendations as part of his or her solicitation for accounts and solicitation for trades; however, Daniels Trading does not maintain a research department as defined in CFTC Rule 1.71. Daniels Trading, its principals, brokers and employees may trade in derivatives for their own accounts or for the accounts of others. Due to various factors (such as risk tolerance, margin requirements, trading objectives, short term vs. long term strategies, technical vs. fundamental market analysis, and other factors) such trading may result in the initiation or liquidation of positions that are different from or contrary to the opinions and recommendations contained therein.
Past performance is not necessarily indicative of future performance. The risk of loss in trading futures contracts or commodity options can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results.
You should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources. You should read the "risk disclosure" webpage accessed at www.DanielsTrading.com at the bottom of the homepage. Daniels Trading is not affiliated with nor does it endorse any trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
