Investing.com - Copper futures came under heavy selling pressure during European morning trade on Wednesday, as ongoing concerns over political uncertainty in Greece weighed on appetite for riskier assets.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.654 a pound during European morning trade, shedding 0.65%.
It earlier fell by as much as 0.7% to trade at USD3.650 a pound, the lowest since April 24.
Investors continued to monitor political developments in Greece, as the debt-laden country struggles to form a coalition government following weekend elections.
Speculation that Greece’s new government will reject terms of its financial rescue grew after Alexis Tsipras, the leader of the leftist Syriza party who is in charge of forming a coalition, declared Tuesday that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
The political uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely, fanning fears over a potential default and exit from the euro zone.
Investors were also eyeing developments in France, as Socialist President-elect Francois Hollande has advocated an approach to tackling the debt crisis centered more on growth, which may create tensions with Germany's insistence on fiscal austerity.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
The heightened sense of risk aversion prompted investors to shun riskier assets, such as stocks and industrial commodities, and flock to the relative safety of the U.S. dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.2% to trade at 80.10, the highest since April 16.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Lingering fears over the health of the global economy also weighed, following a recent run of poor global macroeconomic data.
Copper is sensitive to the global growth outlook because of its widespread uses across industries. The industrial metal is regarded as a leading indicator of the global economy.
Meanwhile, copper traders were looking forward to the release of Chinese data due later this week, including April trade figures and industrial output.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for June delivery tumbled 1.25% to trade at a four-and-a-half-month-low of USD1,584.35 a troy ounce, while silver for July delivery plunged 2.2% to trade at a four-month low of USD28.80 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.654 a pound during European morning trade, shedding 0.65%.
It earlier fell by as much as 0.7% to trade at USD3.650 a pound, the lowest since April 24.
Investors continued to monitor political developments in Greece, as the debt-laden country struggles to form a coalition government following weekend elections.
Speculation that Greece’s new government will reject terms of its financial rescue grew after Alexis Tsipras, the leader of the leftist Syriza party who is in charge of forming a coalition, declared Tuesday that Greece's financial aid package is null and void, and called for a moratorium on Greek debt payments.
The political uncertainty fuelled fears that Greece will not have a government in place in time to secure its next tranche of international aid next month, as new elections look increasingly likely, fanning fears over a potential default and exit from the euro zone.
Investors were also eyeing developments in France, as Socialist President-elect Francois Hollande has advocated an approach to tackling the debt crisis centered more on growth, which may create tensions with Germany's insistence on fiscal austerity.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
The heightened sense of risk aversion prompted investors to shun riskier assets, such as stocks and industrial commodities, and flock to the relative safety of the U.S. dollar.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.2% to trade at 80.10, the highest since April 16.
A stronger dollar reduces demand for raw materials as an alternative investment and makes dollar-priced commodities more expensive for holders of other currencies.
Lingering fears over the health of the global economy also weighed, following a recent run of poor global macroeconomic data.
Copper is sensitive to the global growth outlook because of its widespread uses across industries. The industrial metal is regarded as a leading indicator of the global economy.
Meanwhile, copper traders were looking forward to the release of Chinese data due later this week, including April trade figures and industrial output.
China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for June delivery tumbled 1.25% to trade at a four-and-a-half-month-low of USD1,584.35 a troy ounce, while silver for July delivery plunged 2.2% to trade at a four-month low of USD28.80 a troy ounce.