The information on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it and as such is considered to be a marketing communication.
News that Chinese solar panel maker Shanghai Chaori Solar has defaulted on a corporate bond has seen selling take place in large volumes.
Prices have had difficulty breaking through the $3.25/lb level in the past three weeks. The emergence of the stronger dollar in the wake of better-than-expected non-farm payrolls number, coupled with the overall lack of conviction to break higher, has seen the pressure on copper prices escalate.
The four-hour chart is indicating that selling momentum is still strong, but given that prices are looking quite oversold we may see a degree of support come in at $3.08/lb.
The selloff has not been restricted to copper; gold and nickel have also suffered losses today.