Copper Futures Tumble as European Debt Crisis May Reduce Growth

Bloomberg reported that Copper futures inched down on concern that the Europe’s debt crisis may slow down global growth and spur a slump in commodity demand.

The market news is quoted as saying:

U.S. Treasury Secretary Timothy F. Geithner called on governments to unite with the European Central Bank to boost the capacity of their 440 billion-euro ($592 billion) bailout fund, warning failure to act threatened “cascading default, bank runs and catastrophic risk.” The Standard & Poor’s GSCI Index of 24 commodities fell to the lowest since Dec. 1.

“The global economy, in particular the western economies, are sort of in a quasi-recessionary environment,” Bart Melek, an analyst at TD Securities in Toronto, said in a telephone interview. “This means that copper-demand growth is going to moderate for a bit.”

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