Copper Retreats on Fears That China Will Refrain from Stimulus
Copper retreated on concerns that China may refrain from stimulating its economy. China’s industrial production rose 9.2 percent and retail sales climbed 14.2 percent in September from a year ago, beating forecasts. The data was good, but that did not make market participants happy. Traders tend to focus on the future events, not the past ones, and it is not unusual that a positive event is perceived negatively in the context of its impact on the future.
As for the actually bad news, US unemployment claims jumped from 342,000 to 348,000 last week, higher than the figure of 367,000 that analysts have anticipated. Europe remains a source of uncertainty that deters investors from buying riskier assets, including raw materials.
Copper slipped from $3.7433 to $3.7205 per pound on COMEX yesterday.
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