Futures overview on May the 8th: Copper drops to 5-month low


Today’s market had some very stressful outcomes. Volatility was huge, and main base metals and commodities prices were changing their movements unexpectedly, in a way that predictions were mostly positive.



Comex copper prices started trading in the new week at the lowest price since December. Among signs of weak global demand, focusing particularly on Asia. 
Speaking about copper for July delivery on the Comex division of the New York Mercantile Exchange fell 4.25 cents. Which is same as 1.7% to $2.4770 per lb. Earlier, the contract touched $2.4760 per lb. And it was the lowest since December 27.


Tracking precious metals, especially gold, Comex gold for June settlement was gaining $2.90 or 0.2% to $1,229.80 per oz.
Over the weekend, Chinese imports of unwrought copper and copper-fabricated products fell 4.4% year-on-year in April. Following, total imports for the first four months of 2017 were down 22.9% compared to the same period of last year. Generally, total imports in the first four months of 2017 of 1.88 million tonnes were down 22.9% year-on-year.

Chinese import demand, which was pretty weak, coupled. With mounting inventory stocks demonstrate soft global demand nevertheless the market moving into the summer months where consumption peaks.

“While we remain constructive on copper over the very short term, our final affinity has seriously been tempered by 1) the deterioration in the technical picture. 2) the negative micro dynamics. And 3) the continued poor investor conviction in the base metals complex,” (Metal Bulletin)

European market

In Europe, the election of Emmanuel Macron as the French president should lead to the stabilisation of the political scene. Malcolm Freeman, Kingdom Futures, noted:

“The new French president Macron will slightly calm European nerves. And unlike the USA and President Trump it looks it will be a case of no real change. Also the risk of the breakup of the EU has taken a step back which will meaningly calm investor’s nerves.”

Members of the metals industry gathered for LME Asia Week in Hong Kong this week, key topics was about launched discussion paper and finding a balance between traditional and new LME users.

Currencies & data

Firstly, The dollar index was up 0.39 to 98.96. Secondly, in data, US unemployment claims for April came in at 238,000. It is the amount below the forecast of 246,000. Thirdly, preliminary non-farm productivity and unit labour costs during the first quarter came in at -0.6% and 3%, respectively.
Following, EU Sentix investor confidence took a value at 27.4 for May. Which is up from 23.9 in the previous period.
Today is the day when UK Halifax house price index and BRC retail sales data will come out. US labour market conditions are also specific.

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