The copper market initially posted sizable losses during the early portion if Wednesday's trading action. With sluggish price action from Asian copper markets overnight, some traders may have come away with a negative Chinese demand outlook. Reports of a loss at Alcoa have applied some pressure to both copper and aluminum prices today, despite the fact that Alcoa's earnings were better than some expectations. Many traders feel that copper is likely to be influenced rather significantly by upcoming US corporate earnings news, especially in the face of slack earnings from large industrial companies.
An element applying some early pressure to copper prices this morning is a sluggish start for US equities, especially since stocks have reached another low for the move early today and that can make the macro economic outlook feel even softer. The copper market will see a Fed Beige book release later today and some traders fear that report will highlight weakness in the US economy as that report window took place when the Fed made its latest aggressive easing moves.
*Disclaimer: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.
Copyright CME Group All rights reserved.