SF: Copper Tumbles Most in Five Weeks on Slowing Growth Concerns
June 29 (Bloomberg) -- Copper prices fell the most in five weeks after reports signaled a deteriorating economic outlook in China and the U.S., the world's top metals buyers.
Equities fell around the world after the Conference Board revised lower its leading economic index for China, pointing to slowing expansion. U.S. consumer confidence fell to the lowest level since March, the New-York based research group said in a separate report. Copper is headed for a third straight monthly loss on concern that the global recovery is faltering.
"We are expecting slowing growth in China and the U.S. for the second half of this year," Jeffrey M. Christian, the managing director of CPM Group, said today in an interview in New York. "It could create fear for investors and that would continue to impact the base metals."
Copper futures for September delivery fell 13.9 cents, or 4.5 percent, to $2.9505 a pound at 10:44 a.m. on the Comex in New York. A close at that price would be the biggest loss for a most-active contract since May 17.
Europe's sovereign-debt crisis coupled with fear of a slowdown in China and the U.S. has roiled global equity and commodity markets for the past two months. Before today, copper had tumbled 16 percent since touching a 20-month high in April.
'Extremely Weak'
"Copper looks extremely weak," said Gijsbert Groenewegen, a partner at Gold Arrow Capital Management in New York. "There are problems all over the world that are going to have a big impact on all the commodities."
The Conference Board's sentiment gauge in the U.S. fell to 52.9 in June from a revised 62.7 in May.
The Board said its China index rose 0.3 percent in April, less than the 1.7 percent gain reported on June 15. The previous release contained a "calculation error" for total floor space on which construction began, the group said.
"Any data out of China that gives an indication of a slowdown in construction activity will be important for commodities," Daniel Major, an analyst at RBS Global Banking & Markets in London, said by telephone.
Copper for delivery in three months fell 5.2 percent to $6,512 a metric ton ($2.96 a pound) on the London Metal Exchange.
Aluminum, nickel, lead, tin and zinc prices also dropped.
