Copper Futures Expected to Open Lower Amid Economic Concerns

Strategic Insights -

Metal prices, including copper, are poised to start the trading week on a subdued note as economic concerns weigh on market sentiment. The euro's decline against the US dollar is also contributing to a negative outlook for metals, with March copper futures expected to open around 3 1/2 cents a pound lower on the Comex division of the New York Mercantile Exchange. Meanwhile, US economic data releases this week will be closely watched, including December personal income and spending, the Institute for Supply Management's manufacturing index, and construction spending.

Key Takeaways:

  • March copper futures are expected to open around 3 1/2 cents a pound lower on Monday, based on electronic activity ahead of the pit session.
  • The decline of the euro against the US dollar is contributing to a negative outlook for metals, with the euro trading at $1.2756.
  • U.S. economic data releases this week include December personal income and spending, the Institute for Supply Management's January manufacturing index, and construction spending.
  • Copper inventories stored in London Metal Exchange warehouses fell 325 metric tons on Monday, leaving them at 491,200 metric tons.
  • March copper rose 1.1 cents to settle at $1.4685 a pound on Friday, despite a stronger dollar.
  • The most recent Comex inventory data, released late Friday afternoon, remained unchanged at 40,240 short tons.

Statistics:

  • March copper futures are expected to open around 3 1/2 cents a pound lower.
  • The euro is trading at $1.2756, down from $1.2812 late Friday afternoon.
  • December personal income is forecast to decline by 0.4%.
  • Spending is expected to decrease by 0.8% in December.
  • The Institute for Supply Management's January manufacturing index is expected to dip to 32.

Sources:

  • Dow Jones Commodities News via Comtex: Feb 02, 2009
  • Dow Jones Newswires: Feb 02, 2009, 0752ET