Investing.com - Copper futures were lower during European morning trade on Tuesday, as appetite for riskier assets weakened after Moody’s stripped France of its prized AAA credit rating, while investors looked ahead to an upcoming meeting of euro zone finance ministers.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.515 a pound during European morning trade, down 0.35% on the day.
New York-traded copper prices fell by as much as 1.1% earlier in the day to hit a session low of USD3.513 a pound. Comex copper prices touched a high of USD3.540 a pound on Monday, the strongest level since November 7.
Ratings agency Moody’s downgraded France’s AAA-rating by one notch to AA1 late Monday and kept a negative outlook on the rating, citing weakening growth prospects for the euro zone’s second-largest economy.
The downgrade followed a similar move by Standard & Poor’s several months ago, leaving Fitch Ratings as the only ratings firm to keep France at triple-A.
Investors now looked ahead to of a meeting of euro zone finance ministers later in the day in Brussels to discuss whether Greece can receive its next installment of bailout funds.
Finland's finance minister said earlier she was unsure whether euro zone finance ministers would approve Greece's next loan tranche at Tuesday’s meeting.
Europe as a region is second after China in global demand for the industrial metal and worries over its economic growth have kept copper prices under pressure in recent weeks.
Markets participants also continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
U.S. and European equities rallied on Monday, as sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal crisis were "constructive."
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the seven weeks left before the January 1 deadline.
Elsewhere on the Comex, gold for December delivery dipped 0.1% to trade at USD1,732.85 a troy ounce, while silver for December delivery shed 0.15% to trade at USD33.14 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.515 a pound during European morning trade, down 0.35% on the day.
New York-traded copper prices fell by as much as 1.1% earlier in the day to hit a session low of USD3.513 a pound. Comex copper prices touched a high of USD3.540 a pound on Monday, the strongest level since November 7.
Ratings agency Moody’s downgraded France’s AAA-rating by one notch to AA1 late Monday and kept a negative outlook on the rating, citing weakening growth prospects for the euro zone’s second-largest economy.
The downgrade followed a similar move by Standard & Poor’s several months ago, leaving Fitch Ratings as the only ratings firm to keep France at triple-A.
Investors now looked ahead to of a meeting of euro zone finance ministers later in the day in Brussels to discuss whether Greece can receive its next installment of bailout funds.
Finland's finance minister said earlier she was unsure whether euro zone finance ministers would approve Greece's next loan tranche at Tuesday’s meeting.
Europe as a region is second after China in global demand for the industrial metal and worries over its economic growth have kept copper prices under pressure in recent weeks.
Markets participants also continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
U.S. and European equities rallied on Monday, as sentiment was bolstered after U.S. Congressional leaders said talks with President Barack Obama on Friday to avert the fiscal crisis were "constructive."
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the seven weeks left before the January 1 deadline.
Elsewhere on the Comex, gold for December delivery dipped 0.1% to trade at USD1,732.85 a troy ounce, while silver for December delivery shed 0.15% to trade at USD33.14 a troy ounce.