Surging preoccupations about stunted economic growth in the globe's second-largest consumer pulled down copper futures on Thursday as the partial government shutdown in the U.S. reached its third day, according to Bloomberg.
U.S. President Barack Obama and congressional leaders conducted talks on Wednesday but they were unproductive as far as cutting through the budget impasse. The reddish metal is sensitive to worldwide and domestic economic and financial developments due to its widespread use in construction, manufacturing and industry.
"Fears for an effective U.S. government shutdown weigh on global risk sentiment, triggering small-scale profit-taking," states a Thursday email authored by analyst Andrey Kryuchenkov with VTB Capital in London, according to the news source. Base metals "are likely to remain range-bound," the analyst told the news source.
At 9:32 a.m. on Thursday, copper futures fell 0.93 percent, a 0.031-cent loss to $3.285 per pound.
Reuters reports the reddish metal dropped to its lowest value in about seven days on Wednesday as it tracked the downward dive of the U.S. dollar against the shared currency of the European Union. The greenback was impacted by weak employment data and the euro was spurred higher by the central bank opting to leave borrowing rates unchanged.
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