Copper plunges more than 2% on weak China factory data, Fed
Investing.com
Published May 23, 2013 04:58AM ET
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.302 a pound during European morning trade, down 2.3% on the day.
New York-traded copper prices fell by as much as 2.8% earlier in the day to hit a session low of USD3.285 a pound, the weakest level since May 20.
Data released earlier showed that China’s HSBC Flash Purchasing Managers Index, the earliest indicator of the country's industrial activity, fell to a seven-month low of 49.6 in May from a final reading of 50.4 in April.
Copper traders consider shifts in the HSBC PMI an indicator of China's copper demand, as the industrial metal is widely used by the sector.
Prices came under additional pressure after Federal Reserve Chairman Ben Bernanke said Wednesday the central bank could begin tapering its bond-buying program in the "next few meetings”.
In testimony to the U.S. Joint Economic Committee on Wednesday, Bernanke said a decision to scale back the Fed’s asset purchase program could be taken in the "next few meetings" depending on economic data.
Meanwhile, Wednesday’s minutes from the U.S. central bank’s May meeting showed a "number" of policymakers were prepared to taper bonds purchases as soon as June.
Elsewhere on the Comex, gold for June delivery rose 1.4% to trade at USD1,387.25 a troy ounce, while silver for July delivery was little changed to trade at USD22.47 a troy ounce.
Get The News You Want
Written By: Investing.com
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.