Rising bond yields and missed deficit targets in Spain signaled that the region’s fiscal crisis may escalate. Today’s drop for copper is the third straight and follows a report yesterday showing imports of the metal fell from a month earlier in China, the world’s biggest user.
“Concerns about the health of the global economy are weighing on copper,” Frank Cholly, a senior commodity broker at RJO Futures in Chicago, said in a telephone interview. “The Euro-zone crisis may reignite. It looks like China is slowing.”
Copper futures for May delivery fell 0.3 percent to settle at $3.6395 a pound at 1:14 p.m. on the Comex in New York, after reaching $3.6305, the lowest since Jan. 17. The metal has dropped 4.1 percent this week, the biggest three-session slump in a month.
Prices have closed lower than the 100-day and 200-day moving averages for the past two days. Falling below the measures can be a bearish signal to some investors who follow historical price patterns.
On the London Metal Exchange, copper for delivery in three months rose 0.1 percent to $8,040 a metric ton ($3.65 a pound).
Also in London, aluminum rose 1.6 percent to $2,099 a ton, the biggest gain since Feb. 24. Alcoa Inc. (AA), the largest U.S. producer of the lightweight metal, yesterday reported an unexpected first-quarter profit after orders rose and the company closed higher-cost smelting capacity.
Lead and zinc also gained on the LME, while nickel and tin fell.
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