As traders watch risk aversion flow from China to Europe, copper prices have taken a big hit, falling all the way to $3.342 a pound on fears the European sovereign debt crisis is getting worse and not stabilizing as officials hoped.
With Chinese manufacturing activity expanding at its fastest rate in a year and a political transition on the way, commodity stocks may be due a lift. That’s our topic on today’s Trading the Globe.
Despite trader hopes to the contrary, the prospect of yet another round of apocalyptic headlines Greece is becoming a problem again as we shift into the bottom of half of week. The disappointment is once again sending commodity prices and confidence in the euro zone lower.
The London Metal Exchange, the world’s largest metals exchange, reports that copper stockpiles from the U.S. to China are already at 2-1/2-year lows and poised to decline for the fifth month in a row. The news has awakened the slumbering copper bulls to move speculation, sentiment and pricing to the highest level in two months.