NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Copper futures slump after China trade data fuels growth worries

Published 13/10/2015, 08:08
© Reuters.  Copper declines after China imports fuel growth worries
DX
-
GC
-
HG
-

Investing.com - Copper futures declined on Tuesday, after latest trade figures out of China added to concerns over the health of the world's second-biggest economy.

Copper for December delivery on the Comex division of the New York Mercantile Exchange shed 1.5 cents, or 0.61%, to trade at $2.400 a pound during morning hours in London.

A day earlier, copper rallied to $2.437, the most since September 18, before paring gains to end at $2.415, up 0.1 cents, or 0.06%.

Data released earlier showed that China's trade surplus widened to $60.3 billion last month from $60.2 billion in August, compared to estimates for a surplus of $46.8 billion.

Chinese exports slumped 3.7% from a year earlier, better than forecasts for a decline of 6.3%, while imports plunged 20.4%, far worse than expectations for a drop of 15.0%.

A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus.

China’s copper arrivals in September rose nearly 24% from a month earlier to 460,000 metric tons, indicating that demand for the red metal remains strong despite recent market turmoil.

The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere in metals trading, gold futures for December delivery declined $9.10, or 0.78%, to $1,155.40 an ounce. Prices of the precious metal rallied to a seven-week peak on Monday, boosted by diminished expectations that the Federal Reserve will hike interest rates before the years end.

A delay in raising interest rates would be seen as bullish for gold, as it decreases the relative cost of holding on to the metal, which doesn't offer investors any similar guaranteed payout.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed near three-week lows at 94.82.

Investors were looking to U.S. economic reports on retail sales and inflation later in the week for further indications on the possible direction of monetary policy.

The timing of a Fed rate hike has been a constant source of debate in the markets in recent months.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.