COPPER GETS TROUNCED ON DISAPPOINTING
CHINESE, EURO-ZONE FACTORY ACTIVITY
Date: 23/3/2012
Copper prices got trounced by over two percentage points on Thursday to the lowest levels seen in two weeks as investors squared off hefty positions from the growth sensitive metal amid growing concerns over weakening demand prospects of the metal. The discouraging manufacturing activity reading not only in world’s top copper consuming nation China but also in the European region dampened demand prospects of the industrial metal. Investors even overlooked the encouraging US initial jobless claims numbers which fell to a four year low in the week ended March 17, the fewest since February 2008, as the moderate strength in American greenback against a basket of currencies made dollar denominated red metal more expensive for holders of other currencies.
Copper futures for May delivery got pounded by 8 cents or 2% to close at $3.7655 per lb, after trading as high as $3.8570 and as low as $3.87525 per lb, on the Comex metals division of the New York Mercantile Exchange. Copper for three-month delivery on the London Metal Exchange plunged $165 to settle at $8,290 a tonne.
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