IV:Copper futures trade near 3-week low amid global growth concerns
Investing.com - Copper futures were down sharply during European morning hours on Monday, as appetite for growth-linked assets weakened amid concerns over the global growth outlook.
Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.693 a pound during European morning trade, down 1.2% on the day.
New York-traded copper prices fell by as much as 1.5% earlier in the day to hit a session low of USD3.690 a pound, the weakest level since January 30.
Market sentiment remained on the back foot after data last week showed that the euro zone's economy contracted by 0.6% in the three months to December, compared to expectations for a 0.4% decline.
It was the fastest rate of decline since 2009 and marked a third consecutive quarter of contraction.
Also last week, official data showed that Japan’s economy contracted by 0.1% in the fourth quarter, compared to expectations for an uptick of 0.1%.
Meanwhile, in the U.S., data on Friday showed that industrial production contracted by 0.1% in January, missing expectations for a 0.2% rise and well below a 0.4% increase the previous month.
U.S. housing data due this week could provide more cues on the country's economic health.
The downbeat global growth outlook prompted investors to shun riskier assets and move in to the relative safety of the U.S. dollar.
The dollar index, which tracks the performance of the greenback against a basket of six other major currencies, was up 0.3% to trade at 80.81, the highest level since January 4.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere on the Comex, gold for April delivery added 0.15% to trade at USD1,612.00 a troy ounce, while silver for March delivery rose 0.35% to trade at USD29.95 a troy ounce.
Trade volumes were expected to remain light on Monday, with U.S. markets remaining closed for the President’s Day holiday.
