Activity at factories in the euro zone and the U.S. endured hiccups in July as China, the top consumer of the industrial metal, saw manufacturing production slip to its lowest in eight months. Copper is sensitive to worldwide economic and financial developments due to its myriad uses in manufacturing and industry.
"The data surprised on the downside for China, which isn't positive for metals," analyst Gayle Berry with Barclays Capital told the news source. "But while the market is disappointed with some of the economic data, you're probably not going to see a big sell-off, because there is anticipation demand is going to improve due to the Chinese government signalling that it is taking a pro-growth stance."
At 2:32 p.m. on Wednesday, copper futures dropped 1.83 percent, a 0.0625 cent loss to $3.355 per pound.
Bloomberg reports losses to copper futures on Wednesday continued the reddish metal's poor performance from July.
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.