Copper traders are bearish for a second week after mounting concern that slowing growth in China and Europe would curb demand drove prices to a four-month low. Nine of 18 analysts surveyed by Bloomberg expect the metal to drop next week and three were neutral, the first consecutive negative outlook since April 6.
Hedge funds and other money managers cut their wagers on higher prices by 69% in the week ended May 15, the most in a month, Commodity Futures Trading Commission data show.
Raw materials slipped to a five-month low this week and more than $4.3 trillion was erased from the value of global equities this month on concern that Greece will exit the euro as the region's debt crisis deepens. Manufacturing in the 17-nation euro area slumped to the weakest in almost three years this month and may shrink for a seventh month in China, which accounts for about 40% of global copper consumption.
"Europe has become a more immediate concern. Most people in the copper market were already concerned about the outlook in China. We're looking for prices to find a floor at lower levels in the next couple of months."
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Hedge funds and other money managers cut their wagers on higher prices by 69% in the week ended May 15, the most in a month, Commodity Futures Trading Commission data show.
Raw materials slipped to a five-month low this week and more than $4.3 trillion was erased from the value of global equities this month on concern that Greece will exit the euro as the region's debt crisis deepens. Manufacturing in the 17-nation euro area slumped to the weakest in almost three years this month and may shrink for a seventh month in China, which accounts for about 40% of global copper consumption.
"Europe has become a more immediate concern. Most people in the copper market were already concerned about the outlook in China. We're looking for prices to find a floor at lower levels in the next couple of months."
For more information Click Here
Stock Tips, Commodity Tips
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