Economic speculation in the two top users prompted copper futures to ebb and flow on Wednesday, according to Bloomberg.
China, the top user of the base metal, is seeing indications of an economic recovery, which would fuel demand of the industrial metal. The U.S. is considering a reduction of economy-spurring monetary stimulus measures as stronger economic data is released by the government. The reddish metal tends to be sensitive to worldwide economic and financial developments due to its myriad uses in construction, manufacturing and additional industry.
"The Fed could taper its bond purchases soon with more positive economic data," trader Steve Chun with Hyundai Futures Corp. in Seoul told the news source on Wednesday. "The $7,300 level for copper appears to be burdensome to many investors."
At 9:15 a.m. on Wednesday, copper futures rose 0.24 percent, an 0.008-cent gain to $3.325 per pound.
Reuters reports laborers at the globe's largest copper mine commenced a surprise strike on Wednesday, demonstrating against working conditions and their pay. The Escondida mine in Chile is under the control of BHP Billiton.
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.