US copper futures fell over 2 percent early Friday as sentiment soured amid speculation new austerity measures in Europe will slow economic growth and potential fiscal tightening in China will place further strain on demand. Copper for July delivery off 6.15 cents, or 1.9 percent, to $3.17 per lb by 10:36 am EDT (1436 GMT) on the New York Mercantile Exchange's COMEX division.
Range from $3.1480 to $3.2280. COMEX estimated copper futures volume at 17,976 lots by 10 am. Copper losses mirror 18-month low in euro versus dollar due to growing fears that deep government spending cuts will stifle fragile economic recovery. Increased risk aversion keeps copper under pressure after budget cuts from Spain, Portugal, and Greece fuel economic and demand growth concerns. Demand concerns also within China, as world's top copper consumer may try to curb inflation and cool its economy after data this week showed consumer inflation climbed to 18-month high in April.
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