Wednesday saw copper futures hovering as investors and traders kept an eye on the embattled shared currency of the European Union and the debt scourge that is ravaging it, according to Dow Jones Newswires.
Trailing only China, Europe's consumption of copper is being closely eyed since an economic slowdown or recession in the region would mean demand for the industrial metal would slow. The industrial metal also is sensitive to the performance of the shared currency since purchases of the metal tend to be more expensive for investors in Europe if the euro loses value.
"The European debt markets are exhibiting signs of stability for a second day running, leading to yet another steady tone in the [metal] markets," states a client note from metals analyst Edward Meir with INTL FCStone, according to the news service.
At 2:30 p.m. on Wednesday, copper futures climbed 0.52 percent, a 1.75-cent climb to $3.3870 per pound.
Bloomberg reports copper futures also gained on Tuesday after economic data indicated November saw an uptick in housing starts in the U.S., host of the globe's largest economic system. Through Tuesday, the price of metal futures thus far this year has slumped 24 percent.
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.