Copper Falls on Chinese Slowdown Concerns

It’s called Doctor Copper because you are meant to be able to tell the health of the global economy from the way it behaves.

And at the moment copper is looking pretty sick.

The price of the metal has fallen for two weeks in a row, and reached $6,376.25 a tonne, a low last touched in June 2010.

Analysts are blaming the decline, in part, on signs of weakness in the Chinese economy.

On Thursday of last week the latest batch of numbers out of Beijing showed industrial production grew at its slowest pace for more than four years during January and February.

Meanwhile, retail sales and investment were way lower than expected.

So demand has shrunk, and copper prices have been hit.

via BBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza