Also tugging down the price of the reddish metal was concerns about the U.S. Federal Reserve taking additional steps to slash its monetary stimulus program. China, which accounts for an estimated 40 percent of the globe's consumption of the base metal, is drawing concern because of the laggardly pace of growth and development. Its economy trails only that of the U.S. for size.
"Metals are taking their cue from China-related concerns," states a note authored by analyst Edward Meir with INTL FCStone in New York, according to Bloomberg. "The eagerly awaited Federal Reserve minutes showed a central bank that is now intent on proceeding with its tapering program."
At 10:51 a.m. on Thursday, copper futures dropped 1.33 percent, a 0.0445-cent loss to $3.298 per pound.
Reuters reports expectations are high that the U.S. Labor Department will release strong employment data on Friday, which would be considered by the U.S. Federal Reserve when it ponders next moves regarding monetary stimulus measures.
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.