Copper Drops, Trimming Quarterly Gain, on U.S. Budget Concern
Copper fell for the first time in four days, paring the best quarterly advance since March 2012, on concern the U.S. government is headed for a partial shutdown.
The metal for delivery in three months on the London Metal Exchange lost as much as 0.6 percent to $7,254 a metric ton and traded at $7,280 by 10:43 a.m. in Tokyo. The drop trimmed this quarter’s gain to 7.8 percent, the biggest since March 2012.
The House of Representatives voted 231-192 yesterday to stop many of the Affordable Care Act’s central provisions for one year, tying it to an extension of U.S. government funding through Dec. 15. Should the Senate reject the bill today the government could be shut down from tomorrow.
“The U.S. budget concern put downward pressure on most markets,” said Kazuhiko Saito, an analyst at commodities broker Fujitomi Co. in Tokyo. “The market also remained subdued as demand will slow during the Chinese holidays.”
Markets in China will be closed Oct. 1-7. China’s Purchasing Managers’ Index from HSBC Holdings Plc and Markit Economics rose to 50.2 in September from 50.1 in August, less than last week’s 51.2 preliminary reading and the 51.2 median estimate in a Bloomberg News survey of economists.
Futures for delivery in December fell 0.5 percent to $3.3125 a pound on the Comex in New York. Metal for delivery in December on the Shanghai Futures Exchange was little changed at 52,390 yuan ($8,546) a ton.
On the LME, aluminum, zinc, nickel, lead and tin also declined.
To contact the reporter on this story: Jae Hur in Tokyo at email@example.com