With all metals having fallen overnight, (including Copper down USD259) we will be looking to the Asian markets for some direction today. Chinese markets were on public holidays yesterday for the Mid Autumn Festival also known as the Chinese Moon Festival. For your interest, this holiday is for the Chinese people that like to admire the full moon. As Copper is widely used in everything from laptops, air-conditioners and construction, as demand for such products declines when economic activity slows, copper prices also reduce. To this end, markets look for direction from world economies.
Please find the following article for your perusal;
LME Metals Close Mixed After Euro Pares Losses By Rhiannon Hoyle Of DOW JONES NEWSWIRES
Base metals closed mixed on the London Metal Exchange Monday as traders wrestled with the impact of a fluctuating dollar, expectations of stronger demand and the deepening European debt crisis. While a stronger dollar weighed heavily on the metals in early trade, a rebound in the euro offered some support for the industrial commodities and other risky assets during the European afternoon. A strong greenback tends to damp demand for the metals, which are priced in dollars and subsequently appear more expensive to buyers using other currencies.
Persistent fears over sovereign debt in Europe remained in the spotlight, though, leaving traders wary of dramatically increasing their risk exposure. “Copper prices have slid sharply on fears that slowing global growth will see diminished demand for the red metal,” said CMC Markets analyst Michael Hewson. The markets were kept under pressure after reports that clients of Corporacion Nacional del Cobre de Chile, or Codelco, have asked to cancel orders as concern grows about debt and low economic growth in the U.S. and Europe. “This reflects the uncertainty in markets,” Codelco’s vice president of marketing Rodrigo Toro told the El Mercurio daily newspaper.
Still, expectations of growing demand from China, the world’s top metals consumer, helped to cap losses, market participants said. China’s metal imports rose solidly last month as expectations for stronger construction demand offset credit concerns amid lower raw-material prices.