Copper crumbled more than 3 percent on Wednesday as persistent concerns over eurozone sovereign funding requirements eroded confidence and ignited a flight to safety. A day after climbing more than 2 percent in a broad-based New Year rally, copper prices reversed course, posting their biggest one-day drop in three weeks as European debt fears returned to the forefront.
Industrial metals fell hard after Italy's largest bank, UniCredit, priced a 7.5 billion euro capital hike at a massive discount, suggesting a weak appetite at a time when several lenders face capital increases. In New York, the key March COMEX contract tumbled 9.40 cents, or 2.7 percent, to settle at $3.4345 per lb, after dealing between $3.42 and $3.5245.