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Copper futures edge lower on global growth concerns

Published 10/08/2014, 05:00 AM
Updated 10/08/2014, 05:00 AM
Copper slumps as global growth concerns weigh

Investing.com - Copper futures edged lower during European morning trade on Wednesday, as worries about the strength of global growth drove down prices.

On the Comex division of the New York Mercantile Exchange, copper for December delivery traded at $3.025 a pound during European morning hours, down 1.4 cents, or 0.45%.

A day earlier, copper prices tacked on 0.3 cents, or 0.12%, to settle at $3.039.

Futures were likely to find support at $2.991, the low from October 6, and resistance at $3.049, the high from October 1.

The International Monetary Fund cut its global economic growth forecasts for the third time this year on Tuesday and warned that the recovery remains weak and uneven.

The organization is now forecasting global economic growth of 3.3% this year, down from 3.4% in July and expects growth of 3.8% in 2015, compared to an earlier prediction of 4.0%.

Investor sentiment was also hit after a report showing a steep decline in German factory orders in August fuelled fears that the euro zone’s largest economy is falling into a recession.

Copper is sensitive to the economic growth outlook because of its widespread uses across industries.

Elsewhere on the Comex, gold for December delivery inched up $6.30, or 0.52%, to trade at $1,218.70 a troy ounce, while silver for December delivery climbed 14.5 cents, or 0.84% to trade at $17.38 an ounce.

Market players were cautious ahead of the release of minutes from the Fed's September meeting later in the day, after upbeat U.S. employment data last week underlined optimism over the strength of the economy and fuelled expectations that the central bank will begin to raise rates sooner and faster than previously thought.

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