A firm dollar and concern over the pace and scope of credit tightening in China drove Shanghai copper down nearly 4 percent on Friday, following a drop in London prices in the previous session. Economic data out of the United States, and worries over the fiscal stability of small European countries, highlighted by Greece, cast doubt on the health of the global economy and helped push metal prices lower.
Thursday's US data dimmed the recovery outlook as initial jobless claims suggested only a sluggish recovery in employment, while durable goods orders rose less than expected. "The strong bull-run from 2009 is over. The peak we saw in early January is now a peak for a medium term," said a trader based in eastern China's Zhejiang Province, who expected the next support level for London copper around $6,500. Greece, deep in fiscal trouble, said it has asked no country for a bailout and was the victim of speculators intent on attacking a "weak link" in the euro zone.