Slippage of the industrial metal on Monday marks a direct reversal from Friday's performance when the reddish metal climbed 4.9 percent. Copper is sensitive to financial and economic developments due to its myriad uses in construction, manufacturing and other industries.
Friday's gains stemmed from the unanticipated achievements accomplished by European Union leaders who were convening in Brussels to devise strategies and methods of confronting the sovereign debt crisis tearing through the euro zone. Losses on Monday occurred as some investors capitalized on the sharp gains from the session immediately prior.
"Given the extent of the move higher, we are seeing a modest retracement set in [Monday], with practically all markets lower right now," states a client note authored by senior commodity analyst Edward Meir with INTL FCStone, according to The Wall Street Journal.
At 11:33 a.m. on Monday, copper futures fell 0.83 percent, a 0.029 cent loss to $3.4675 per pound.
Losses to the common currency of the European Union on Monday also pulled down the reddish metal.
China, considered the top consumer of copper, saw its official purchasing managers index drop from 50.4 in May to 50.2 last month. Despite the drop, the index did not fall as low as economists had forecast the metric to fall, which was 49.8. When that metric indicates a reading higher than 50, that indicates activity for manufacturing is on the upswing.
China, also host of the globe's second largest economic system, has endured some rough economic patches thus far this year and the People's Bank of China is the subject of conjecture and scrutiny as to whether it will intervene to draw down the value of the yuan as a strategy of spurring the economy.
Bloomberg reports manufacturing in China dropped to its lowest since late last year.
A significant economic occurrence that is likely to impact the reddish metal's price is scheduled for later this week, The Wall Street Journal reports.
Policy makers with the central bank of Europe are scheduled to convene on Thursday and speculation is mounting that interest rates might be subject to slashes.
Poor economic returns prompted senior commodity analyst Meir to predict the European Central Bank will in fact reduce rates.
"The grim statistics will likely increase the odds that the ECB may cut rates at its next meeting on Thursday, as it will not have inflation to worry about," according to Meir.
Reuters reports that China is not the only locale where manufacturing was on the wane last month. June also saw slowdowns in Japan, the euro zone and the U.S.
Euro zone plants are preparing for scenarios even worse after jobs were cut more quickly than any time in the past 30 months.
Japan, as well as China, saw a reduced number of overseas orders, which prompted increased concerns about a global health slowdown.
New orders also fell in June in the U.S., prompting the manufacturing industry's surprise contraction for the first time in about 36 months.
The slow start does not bode well for the remainder of this week, one analyst said.
"We've got a heavy week of economic data across the world, and we didn't start well, so markets are going to be a bit nervous," analyst Stephen Briggs with BNP Paribas told Reuters. "I suspect markets are going to look again at what was agreed on Friday with the euro zone, and the risk is they will conclude that this isn't the silver bullet and a lot more needs to be known."
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