A sharp selloff in copper prices overnight would seem to confirm for many traders that there are rising concerns that the global economy might be heading back toward recession. With the addition concern from an ongoing financial debacle in the Euro zone, few traders find it surprising to see copper and physical commodity prices in what appears to be a deflationary selloff. Sentiment might have become so negative that decent US economic numbers might add to the pressure on copper prices, as favorably-received numbers might be seen as a barrier to near term easing from the Federal Reserve. Asian copper prices remained under pressure off of rising fears of a breakup of the Euro zone, with that issue possibly reaching another critical junction Thursday morning when Spain has a longer term debt auction. US housing data later this morning is expected to show mixed results with Housing Starts positive and Housing Permits negative, while Industrial Production and Capacity Utilization figures are expected to produce evidence of minimal growth. Many traders in copper and other markets will be looking closely at the FOMC meeting minutes for any sign of possible easing movement from the Federal Reserve. Overnight LME copper stocks showed a decline of 1,000 tons, and now stand at 215,350 tons.
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