As the world's top consumer of the reddish metal, China this past weekend finished one week of observing the Lunar New Year. But economic data from Germany, the euro zone's largest economy, tempered losses endured by the base metal.
"We need to see more substance in terms of underlying demand if the run up in prices is to be sustained. All eyes were on the return of the Chinese. It's still early to say but yes it's been a no show so far," analyst Duncan Hobbs with Macquarie told Reuters on Tuesday. "Also there are reports circulating that the Chinese government may start to tighten" its policies regarding the strength of the yuan.
At 11:26 a.m. on Tuesday, copper futures dropped 2.14 percent, an 0.0805 cent loss to $3.6735 per pound.
The Wall Street Journal reports Chinese equities were slipping on Tuesday amid concerns for the Asian nation's anticipated action to address the property market.
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.