Copper Prices Fall Lower on China Stock Market Fears

Traders are contemplating the long term impact of recent events in China, Dow Jones Business News reported. The Shanghai and Hong Kong stock markets continued to fall precipitously this week, despite government measures to stop the market’s free fall.
As quoted in the publication:

Copper prices plunged to a six-year low on Tuesday after a collapse in Chinese stocks unleashed fears of a wider economic slowdown in the world’s top copper consumer. Traders jettisoned their copper holdings on concerns losses in stocks would translate into lower demand for copper wires and plumbing as consumers would cut spending on electronics, new cars and houses. But prices soared higher just as quickly after broad government measures to stem the slide in Chinese equities soothed investors’ nerves.
On Friday, copper prices pulled back as traders mulled the longer-term impact of recent stock-market gyrations. The Shanghai Composite rose 4.5% to 3877.80 on Friday, while the smaller Shenzhen market rose 4.1%. Still, roughly half of all Chinese stocks remain suspended from trade on Friday, casting doubts on the rebound.

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