Copper plumbs 6yr low on Paris attacks
Shanghai - Copper fell to a fresh six-year low as investors rushed to less risky assets after the terror attacks in Paris.
The metal fell as much as 0.9 percent to $4 783 a metric ton, the lowest since July 2009. The violence in the French capital has renewed worries about political and economic risk, just as concerns deepen that demand for metals is ebbing. Copper dropped 3.3 percent last week.
Stocks opened lower and gold gained in early trading in Asia as investors mulled the possible consequences of Europe’s worst terror attack in more than a decade. The attacks come amid fragile economic growth around the world and continued instability in the Middle East. The euro dropped along with Asian stocks on Monday, while safe havens including the dollar and gold advanced.
“When you see an event of that magnitude, some investors will just step away from risk assets,” said David Lennox, resource analyst at Fat Prophets in Sydney by phone. “Then you’ve got the dollar up again which just compounds the pressure.”
Copper fell 0.2 percent to $4 815 a ton by 10:42 a.m. in Shanghai. The direction of other metals was mixed, with nickel and lead rising while zinc, aluminum and tin fell.
Producers, traders and consumers are set to gather in Shanghai for the annual Asia Copper Week. China is facing an unprecedented drop in copper imports next year as demand weakens and domestic production rises, Stephen Huang, chief executive officer of trading house Arc Resources, said in an interview.Bloomberg