Copper futures is once again in choppy trading with disappointing Chinese growth data prevailing the speculation that Beijing officials will have to do more to jumpstart their economy. Copper futures ended trading Wednesday at New York’s Commodity Exchange up almost .02c from the day before near $2.72 a pound.
The Chinese economy is said to have grown by 7% in the first quarter – which was forecasted – but down from an expansion rate of 7.3% from the prior quarter. This happens to be the slowest pace of growth for their country since the global financial crisis era in 2008.
“Copper traders need to see Chinese policy-makers doing more to elevate their flailing economy, and it needs to happen soon,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, sharing his fundamental analysis regarding the current copper futures situation. Craney added, “The overall economy may be growing – albeit slower – but their industrial production slowing down below expectations may be the tell-tail signs of what to expect.”
The trend for copper futures are at a crossroad. The up-moves in copper fail to have immediate follow through thrust which keep me on the sidelines.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.