The shared currency of the European Union's losses on Monday pulled down copper futures but that slippage in value was tempered by China's vow to support growth, according to Reuters.
The economy of the Asian nation, as the globe's top consumer of the reddish metal, is projected to bounce back from the various hiccups it has endured thus far this year. Analysts project those climbs to occur later this quarter or early during the fourth quarter of the year. Copper is sensitive to economic and financial developments worldwide due to its wide usage in construction, manufacturing and other industry.
"After a massive move upwards it's not unrealistic to see something of a correction and the market is again having another look at what is going on fundamentally, and it's not as positive as what the market thought last week," analyst Eugen Weinberg with
Commerzbank told Reuters.
At 9:20 a.m. on Monday, copper futures dropped 0.49 percent, a 0.0165 cent loss to $3.351 per pound.
But Bloomberg reports Monday's losses were correlated to the prospect of Chinese demand for copper being on the wane.
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.
