Copper futures shed more than 1.4 per cent in the domestic market on Friday as investors and speculators exited positions in the industrial metal amid concerns that a worsening global slowdown may curb demand for copper.
German factory orders sank by 1.4 per cent in July from June, signaling a faltering recovery in Europe’s biggest economy, striking a further blow to the recovery in the 19-member Euro area which is facing lower growth and inflation this year. The ECB last week cut its forecast for Euro area economic growth to 1.4 per cent in 2015 from 1.5 per cent expected earlier.
Meanwhile, fears that a slowing Chinese economy, the world’s biggest consumer of metals, may limit copper demand, coupled with weakness in US jobs data also weighed on sentiment.
The US economy added only 173,000 jobs in August, the smallest gain in five months, compared to an upwardly revised 245,000 increase in July, and below expectations of a 217,000 rise.
Copper may rebound today as stocks in China were trading higher after a three-day holiday, easing concerns over the country’s equity turmoil.At the MCX, Copper futures for November 2015 contract closed at Rs 347.50 per 1 kg, down by 1.45 per cent after opening at Rs 351.50, against the previous closing price of Rs 352.60. It touched the intra-day low of Rs 345.80.
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