Copper futures reacted to Chinese economic market data by selling-off after mostly in-line with market expectations after reaching a two-week high only yesterday. Copper futures settled down just over .70 cents today at $2.673 per pound at New York’s Commodity Exchange.
The Chinese government data revealed their industrial production rising by a rate of 6.1% (annualized) last month – just above a 6% increase, and following a 5.9% gain in April. This information comes after it has been learned that China’s economy grew at the slowest pace in six years in the first quarter.
“There are signs that the fragile Chinese economy will need to be shored-up to prevent a further slowdown,” said Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, sharing his view regarding the fundamental assessment of the copper futures market. Craney added, “This is what the copper traders are most likely responding to.”
Copper futures newly emerged down-trend has broke down to lower lows not seen since March & April. Next level of support comes in at the $2.56 level.
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