Copper Declines on China Concern
Source: Bloomberg, Anna Stablum and Millie Munshi (6/29/10)
"Equities fell after the Conference Board lowered its leading economic index for China."
Equities fell around the world after the Conference Board lowered its leading economic index for China, pointing to slowing expansion. U.S. consumer confidence fell to the lowest level since March, the New-York based research group said in a separate report. Copper is headed for a third straight monthly loss on concern that the global recovery is faltering.
"Copper looks extremely weak," said Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York. "There are problems all over the world that are going to have a big impact on all the commodities."
Copper futures for September delivery fell 15.9 cents, or 5.1%, to $2.9305 a pound on the Comex in New York. That marks the biggest loss for a most-active contract since May 17.
Europe's sovereign-debt crisis coupled with fear of a slowdown in China and the U.S. has roiled global equity and commodity markets for the past two months. Copper has plunged 20% since touching a 20-month high in early April.