Copper eased on Friday, extending an overnight decline in London, with more evidence of thinning demand as the global recession worsens. Prices of copper, a key barometer of economic activity, fell nearly 3 percent on Thursday after data showed stocks at London Metal Exchange warehouses rose by 22,750 tonnes, the biggest single-day rise since August 2004, to 477,675 tonnes.
And in another sign that the global economy was worsening, data showed unemployment in Japan at a near three-year high and industrial output had plunged by a record 10 percent last month. US data, due at 1330 GMT, is expected to mirror the bleak outlook of its economy, with economists projecting that gross domestic product will shrink at an annualised 5.4 percent in the fourth quarter, its weakest in 26 years. LME copper for delivery in three months dropped $20 or 0.6 percent to $3,220 a tonne by 0450 GMT. Copper could take a further hit.
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