Copper Falls for Second Day on Renewed European Debt Concern
Copper fell for a second day on renewed concern that European leaders won’t agree on ways to expand the region’s rescue packages.
German Chancellor Angela Merkel is rejecting increasing the upper limit of funding for Europe’s permanent bailout mechanism. U.S. equities (SPX) pared gains, and the euro declined to an 11-month low against the dollar. Copper has slumped 23 percent this year as Europe’s debt woes escalated.
“This is a skittish market,” Adam Klopfenstein, a market strategist at Archer Financial Services Inc. in Chicago, said in an e-mail. “We are seeing a macro-based move. The strength in the dollar is causing copper gains to evaporate, and stocks moving lower from the morning rally is contributing to the selloff.”
Copper futures for March delivery slid 0.6 percent to close at $3.4415 a pound at 1:16 p.m. on the Comex in New York. The metal dropped 2.6 percent yesterday, the most in three weeks, after Moody’s Investors Service said it will review the credit ratings of European Union nations.
On the London Metal Exchange, copper for delivery in three months slipped 0.1 percent to $7,600 a metric ton ($3.45 a pound).
Aluminum, zinc, nickel, tin and lead also fell in London.
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