Concerns about the economic stability of the euro zone pulled down copper futures on Monday as the base metal dropped to its lowest value in 120 days, according to Reuters.
In exchange for member nation Cyprus being awarded a bailout worth 10 billion euros over the weekend, regional finance ministers insisted nationals pay as much as 9.9 percent on the deposits as tax. But members of the nation's parliament are set to cast votes on the proposal on Monday.
"Cyprus will impact metals. The repercussions haven't even been fully priced into forex and bond markets yet. The Cypriot parliament has to vote still, difficulties in Cyprus could spread. This is what markets are now pricing in after weeks of more settled conditions, or complacency arguably," analyst Stephen Briggs with BNP Paribas told the news source on Monday.
At 12:16 p.m. on Monday, copper futures fell 2.24 percent, a 0.0775 loss to $3.4415 per pound.
Bloomberg reports the industrial metal's losses on Monday set the tone for other base metals that were impacted by the news about the euro zone.
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.