Copper sees poor start to 2014

The first few trading days of the year have not been kind to copper after an impressive end to 2013.

Starting the year’s trading on a Thursday was never going to stimulate large volumes of business, and this morning’s non-manufacturing purchasing managers index from China has forced the price even lower than expected.

The 6% improvement in price over December flew in the face of market fears. A number of the larger mining companies have already stated their intention to increase productivity, and the anticipated increase in supply kept any chance of over enthusiasm in check.

Today’s price action has seen copper bounce off the 20-day moving average. The price has continued to struggle in its efforts to break through previous August highs. The end of December also coincided with the relative strength indicator hitting the top end of the range.

With a number of Federal Open Market Committee members, including Fed chairman Ben Bernanke, speaking at various events today we could yet see sentiment affected, depending on the markets interpretation. 

High Grade Copper chart

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 Bank S.A. 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.