Copper futures on Tuesday were ebbing and flowing amid concerns about reductions to supplies of the base metal and speculation that the U.S. Federal Reserve will reduce its economy-spurring stimulus measures, according to Bloomberg.
The non-manufacturing index of the Institute for Supply Management for the U.S. pushed to 56 last month, advancing well past Bloomberg-polled economists' median projection of 53.1 for this month. The metric measured at 52.2 during the month prior.
"Everyone is speculating when Fed may reduce stimulus and that's the key driver for all markets," senior trader Hwang Il Doo with Korea Exchange Bank Futures Co. in Seoul told the publication on Tuesday, noting reductions to inventories in warehouses in London and China would minimize dives in prices of the base metal.
At 9:39 a.m. on Tuesday, copper futures gained 1.03 percent, a 0.0325-cent rise to $3.2005 per pound.
Reuters reports the base metal also endured gains on Tuesday as the U.S. dollar dove in value against rival currencies. China, which leads the U.S. for consumption of copper, is poised to release economic data later this week that is likely to impact the price of the base metal.
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.