Copper Prices Expected to Decline Amid Weaker Equities and Stronger Dollar

Strategic Insights -

Copper futures are forecast to open lower on the New York Mercantile Exchange's Comex division, following a decline in base metals on the London Metal Exchange due to weaker European and Asian equities, and a stronger US dollar. London Metal Exchange warehouse inventories of copper continue to rise, with a 3,100 metric ton increase on Tuesday, bringing the total to 526,425 metric tons. Meanwhile, US economic data on Tuesday is expected to show a decline in the Empire State manufacturing survey, while the Treasury reports on international capital flows and the National Association of Home Builders releases its housing-market index.

Key Takeaways:

  • Copper futures are expected to open around 6 cents a pound lower, following a decline in base metals on the London Metal Exchange.
  • London Metal Exchange warehouse inventories of copper continue to rise, with a 3,100 metric ton increase on Tuesday, bringing the total to 526,425 metric tons.
  • US economic data on Tuesday is expected to show a decline in the Empire State manufacturing survey, with a forecasted reading of minus 24.
  • The Treasury is scheduled to report on December international capital flows, and the National Association of Home Builders releases its housing-market index.
  • Other major economic reports this week include import prices, housing starts, industrial production, and minutes of the Federal Open Market Committee's January meeting.
  • The Consumer Price Index is also set to be released on Friday.

Statistics:

  • May copper futures are expected to open 6 cents a pound lower.
  • London Metal Exchange warehouse inventories of copper rose 3,100 metric tons to 526,425 metric tons.
  • The Empire State manufacturing survey is forecasted to show a reading of minus 24.
  • The Treasury is reporting on December international capital flows.
  • The National Association of Home Builders is releasing its February housing-market index.
  • US economic data this week is expected to show declining manufacturing and housing market activity.
  • The Consumer Price Index is set to be released on Friday.

Sources:

  • Dow Jones Commodities News via Comtex
  • Comex division of the New York Mercantile Exchange
  • London Metal Exchange
  • New York Fed
  • US Treasury
  • National Association of Home Builders
  • Federal Open Market Committee
  • Dow Jones Newswires.