DJ Copper Pauses as Traders Eye Weak German, U.S. Economic Data
Tue Jun 24 10:04:37 2014 EDT
By Tatyana Shumsky
Copper futures were nearly unchanged on Tuesday as investors weighed the
impact of downbeat economic reports from Germany and the U.S. on future demand
for the industrial metal.
The most actively traded contract, copper for September delivery, was
recently down 0.10 cent at $3.1410 a pound on the Comex division of the New
York Mercantile Exchange.
Copper prices had risen in recent days, touching a three-week high on Monday
as a small increase in Chinese factory activity soothed worries about metal
demand from the world's top copper consumer. China accounts for about 40% of
global copper consumption, with much of the metal used for manufacturing and
construction.
On Tuesday, copper futures paused their rally after German business
confidence, as measured by the Ifo Institute's lead indicator, fell to 109.7 in
June from 110.4 in May. Economists had pegged the index would slip to 110.2
this month.
Germany is the biggest economy in Europe which, as a region, is the
second-largest copper consumer after China.
A slower-than-expected rise in U.S. home prices also weighed on copper
prices. The S&P/Case-Shiller Home Price Index covering 20 cities posted an
annual gain of 10.8% in April. That is down from a 12.4% yearly pace in March
and less than the 11.4% expected by economists.
The index "shows weakness in the U.S. housing market and it's translating
into weakness in copper," said Bob Haberkorn, a senior commodities broker with
RJO Futures.
Copper electrical wires and plumbing pipes are widely used in residential
construction, and some investors have hoped that a rebound in the U.S. housing
market would lift demand for the industrial metal.
-- Write to Tatyana Shumsky at
[email protected]
(END) Dow Jones Newswires