Copper futures were edging down in value on Wednesday as confidence continued dropping about the European Union two-day summit in Brussels, according to Reuters.
Apprehension for leaders' abilities to control the sovereign debt scourge continued growing as the summit prepares to begin on Thursday, which will mark the EU's 20th set of meetings to control the debt crisis since it began in early 2010. Angela Merkel, chancellor of Germany, said she stands opposed to establishing common euro bonds.
"There have been negative headlines surrounding the EU summit with Merkel's comments. It is not really fundamentals that are driving commodity markets at the moment as the macro overlay is putting pressure on prices," analyst Robin Bhar with Societe Generale told the news source. "Demand (for base metals) is pretty subdued as we move into the holiday season, and I do expect prices to probe the downside. Copper could push below $7,000 a ton."
At 11:14 a.m. on Wednesday, copper futures climbed 0.83 percent, a 0.0275 cent lift to $3.348 per pound.
Bond yields in Spain and Italy, two nations toiling to stave off the debt scourge's damages, were rising on Wednesday, Bloomberg reports.
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.
