Copper futures were dropping in value on Tuesday as news broke about the globe's top consumer of the industrial metal seeing a reduced amount of imports, Reuters reports.
Reduced Chinese metal imports could translate to a lower demand outlook and increased evidence that the sovereign debt scourge is impacting the global economy. The debt crisis has been in effect for about three years and efforts to restrain it have largely been for naught.
"There's been some responses by central bankers to deteriorating conditions (and) we've had some positive news flow out of Europe, but I wouldn't call this a strong market at all," analyst Dan Brebner with Deutsche Bank told the news source. "Growth is going to remain sluggish over the next couple of months with the possibility of further deterioration in the U.S. and China, and my expectation is this will continue to weigh on metals markets."
At 2:13 p.m. on Tuesday, copper futures fell 1.12 percent, a 0.0385 cent drop to $3.393 per pound.
The Wall Street Journal reports the reddish metal's losses were tempered by euro zone finance ministers agreeing to aid debt-riddled Spanish banks.
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.