Preoccupations about the strength of the globe's second-largest economy dragged down copper futures on Friday, Bloomberg reports.
The reddish metal was driving toward a fourth consecutive week of losses as concerns spread about the economy of China, the world's top consumer of the base metal. The industrial metal, which is sensitive to economic developments due to its widespread use in industry, is driving toward losses of 0.5 percent this week.
"There should be a bit of profit-taking after the gains in the last couple of days because there's simply no sign that demand will rise strongly enough to absorb the huge inventories," analyst Fang Junfeng with Shanghai CIFCO Futures Co. told the news source. "We are not bullish on copper."
At 2:49 p.m. on Friday, copper futures fell 2.14 percent, a 0.076-cent loss to $3.476 per pound.
Reuters reports the base metal was damaged by a U.S. dollar that benefited from a strong jobs report released by the U.S. Department of Labor. Though the jobless rate increased to 7.9 percent after registering at 7.8 percent, more jobs were created in the U.S. last month than the previous month.
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.
