Copper prices hit a 7-week low due to worries on Greece & Spain which lead to a fall in the euro, rising anxiety about global growth supported by unsatisfactory corporate earnings and dwarfed U.S. third quarter economic growth.

Hurricane Sandy attributed to the shutdown of the U.S. East Coast Stock markets possibly till Tuesday as a result trading activity is expected to be thin, although the copper contracts like in COMEX will be traded electronically.

The euro against dollar exchange rate has fallen slightly due to uncertainty over Greece to agree on a deal of austerity measures and with no sign on the Spanish side to request for some aid.  This has contributed to increase in metal prices for European Investors.

The economic growth of U.S. slightly picked up as per expectation during the third quarter that was showed through a data on Friday through the global giants Amazon, Apple, Renault and Ericsson, who all posted the results which fell short of expectations.

The benchmark, three months copper contract on LME had closed down by 1.5% at $7699 per metric tons which is the lowest since 6^th September (with its price of $7,670).

The upcoming US election of 6th November and on 8th November and the first stage of the China’s leadership alteration are being cautiously watched by the investors.  

The speculator also seems to exit the long position on copper due to signs of fresh short positions i.e. emerging in China.

Note: This blog is just an expression of the author’s opinion and cannot be deemed responsible for any losses incurred.