In New York, the COMEX July contract hit its lowest level since late December at $3.3725 per lb, before ending the day down 7.20 cents, or 2 percent, at $3.39. Copper prices are now down nearly 2 percent for the year, erasing gains of more than 12 percent seen in February.
"You had comments from China overnight dashing hopes of a major stimulus program, then you had the Spanish government rebuffed by the ECB in terms of shoring up Bankia with bonds," analyst Leon Westgate of Standard Bank said. Influential academics said Beijing should shun aggressive fiscal stimulus, in remarks published in leading state-backed newspapers on Wednesday.
Those views joined a chorus of commentary countering market expectations that China might unveil a stimulus package similar to the 4 trillion yuan ($630.1 billion) in spending unleashed during the global financial crisis. In the US, contracts to purchase previously owned US homes unexpectedly fell in April to a four-month low. "We are not trading any supply/demand fundamentals. There are concerns about China and Europe, and the pending home sales numbers were not very good today," said Bill O'Neill, partner of LOGIC Advisors in Upper Saddle River, New Jersey.