Policy makers with the U.S. Federal Reserve, also known as the Federal Open Market Committee, are slated to begin convening on Tuesday and hanging in the balance is the institution's monthly bond-buying program that aims to spur growth and development amid the recovery from the Great Recession. Impacting the body's discussion, which chairman Ben Bernanke will detail following adjournment on Wednesday, are strong retail sales and factory production data, according to economic information released last week.
"From a macro perspective, the market focus will be on the upcoming FOMC meeting, where participants will seek clarity on the aggressive monetary easing stance taken in the U.S.," states a Monday email to the news service penned by analyst George Adcock with Marex Spectron Group in London.
At 11:17 a.m. on Monday, copper futures fell 0.11 percent, a 0.0035-cent slide to $3.198 per pound.
Policy makers delve into stimulus plan
The Fed is likely to pull down its monthly commitment to the stimulus program, which also is known as quantitative easing, according to economists polled by the news service. More colloquially, the stimulus program is known as QE.
But there also is a train of thought indicating that policy makers, should they not opt to slash the monthly purchases, will discuss the matter.
"We stand by our assertion that a reduction in QE is highly unlikely for the foreseeable future," the analyst told the news source. "However, the mere discussion of it can severely dent investor sentiment and psychology."
As of late, the reddish metal has been slipping amid trying times for industry, manufacturing and additional sectors that capitalize on the base metal. Copper is sensitive to worldwide economic and financial developments due to its myriad uses in industry.
"The market remains heavily short and the potential for a further short-covering rally remains elevated," the analyst told the news source.
Indian site to re-open
Also impacting the value of the industrial metal as the trade week kicks off is India re-opening its top smelters, according to Reuters.
Complaining residents prompted closure that lasted roughly 60 days, according to two sources cited by the publication.
Emissions from the plant in Tamil Badu, which was operated by Sterlite Industries, were prompting difficulties with respiration, according to complaints issued by people in the region.
"We have restarted the plant in the presence of the court-appointed panel," a source with the company told the news service. "It should ramp up to full capacity in about five days."
Supplies of the reddish metal in the subcontinent were slashed by the closure, which prompted imports to climb. The reopening of the site is likely to be a welcome development to manufacturers of cables, such as Finolex Cables Ltd. and Precision Wires India Ltd.
But the development also is likely to cut into tightening world inventories of the reddish metal.
The site was closed at the end of March though a Supreme Court decision last Monday indicated that the plant could open again. A court-appointed panel checking on safety visited the facility on Sunday.
Chilean company, workers reach pact
Another factor that is likely to impact the price of the reddish metal is news about a mine in Chile reaching agreement with laborers, according to The Santiago Times. The South American nation is the globe's top supplier of the metal.
The Collahuasi mine generates 3 percent of the globe's copper and almost 90 percent of the 1,090 laborers approved the deal.
"The agreement represents a step forward in Collahuasi's relations with our workers," company owners said in a release.
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