👀 Ones to watch: The MOST undervalued stocks to buy right nowSee Undervalued Stocks

Copper futures ease off 6-week high ahead of ECB, U.S. jobs report

Published 12/06/2012, 05:09 AM
GC
-
HG
-
SI
-
Investing.com - Copper futures eased off a six-week high during European morning hours on Thursday, as market players looked ahead to the European Central Bank's policy decision later in the day and U.S. jobs data on Friday.

Investors also continued to monitor negotiations among U.S. lawmakers to avoid the looming “fiscal cliff” crisis.

On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.676 a pound during European morning trade, down 0.3% on the day.

New York-traded copper prices traded in a range between USD3.653 a pound, the daily low and a session high of USD3.685 a pound.

Copper futures rallied to a six-week high of USD3.693 a pound on Wednesday, as sentiment on the industrial metal was boosted after comments from a meeting of China’s new leaders implied that supportive economic policy would remain in place.

Investors continued to monitor developments surrounding the fiscal cliff in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1, unless a divided Congress and the White House can work out a compromise in the four weeks left before the deadline.

President Barack Obama reassured markets Wednesday, saying that if Republicans accept tax hikes on wealthier Americans, a deal could be pushed through in "about a week."

President Obama said recently that any solution must include spending cuts and raising revenue, including increasing taxes on the wealthiest.

Republican leaders say they will agree to higher revenue, but they want to close loopholes or reduce tax breaks rather than raise rates.
 
Without a deal, the U.S. could fall back into recession and drag much of the world down with it.

Copper traders are also looking ahead to Friday’s key U.S. nonfarm payrolls data for November, as investors attempt to gauge the strength of the U.S. economy.

Meanwhile, in the euro zone, the ECB was widely expected to keep rates unchanged at 0.75% later Thursday, while a post-policy meeting press conference by President Mario Draghi would be closely watched for indications on the future direction of monetary policy.

Elsewhere on the Comex, gold for February delivery eased down 0.1% to trade at USD1,693.25 a troy ounce, while silver for March delivery fell 0.3% to trade at USD32.86 a troy ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.