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Reuters reported that copper inched down for a second straight day on concern over China’s economic growth and festering debt crisis in Europe.
Reuters reported that copper inched down for a second straight day on concern over China’s economic growth and festering debt crisis in Europe.
As quoted in the market news:
Copper initially led a downhill plunge across most other risk asset markets after data showed China’s economy grew at a 9.1 percent rate in the third quarter — its slowest pace since the second quarter of 2009 — as euro debt strains and a sluggish U.S. economy took a toll. With such a heavy dependence on the country’s near 40 percent intake of the world’s copper, prices of the metal extended losses after the growth data came in slightly below forecasts of 9.2 percent.
The country’s steel and power output also fell, a further sign that economic problems in the West and Beijing’s year-long monetary tightening campaign have begun to pinch.
“Their dependence upon U.S. and European purchasing is enormous. If the West shuts down, China shuts down,” said Philip Gotthelf, the president of Equidex Brokerage Group Inc in Closter, New Jersey.However, better-than-expected U.S. data and ongoing strikes at two copper mines owned by Freeport-McMoran Copper & Gold lent some support and pulled prices away from their lows.
