Copper futures were increasing on Tuesday as the U.S.' top banker took his seat before congress on Capitol Hill as investors anticipated some sort of indication about economy-spurring measures, according to Reuters.
While the reddish metal benefited from anticipations about indications of monetary stimulus from U.S. Federal Reserve chair Ben Bernanke during his two days of testimony, those gains were tempered by ongoing struggles in the euro zone with the sovereign debt crisis. Demand for industrial metals is sensitive to economic developments due to their use in construction, manufacturing and other industry.
"The more we see disappointing data from the U.S. economy, the more the financial community will expect further stimulus," partner Gianclaudio Torlizzi with T-Commodity told Reuters. "The market is reluctant to take big positions ahead of Ben Bernanke's speech as there is a risk for disappointment if he doesn't announce anything new. So the market is still a bit cautious."
At 10:07 a.m. on Tuesday, copper futures dropped 1.06 percent, a 0.037 slip to $3.448 per pound.
The Wall Street Journal reports losses to the U.S. dollar early on Tuesday were beneficial to the reddish metal.
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.
Trade recommendations and profit/loss calculations may not include commissions and fees. Please consult your broker for details based on your trading arrangement and commission setup.
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 third-party trading system, newsletter or other similar service. Daniels Trading does not guarantee or verify any performance claims made by such systems or service.
