This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material 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. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
The major influence affecting the financial markets today stems from the various releases of soft data from China that we have seen today and over the weekend; this is true for the forex market, the stock market and various commodities that are tied to risk appetite, including copper.
News out over the weekend revealing that Chinese exports slumped last month by the largest amount since 2009 (including a 30% fall in imports of unwrought copper) had earlier dragged May copper futures as low as $2.9955 a pound, the lowest level touched by the most-liquid futures contract since June of last year.
After Friday’s weak showing, at those levels, copper was in danger of completing its worst two-day performance since 2011. The situation was exacerbated by weak French industrial production figures, which showed output falling 0.1% year-on-year in January, when consensus estimates had pointed to a small increase.
Futures did mount something of a recovery, though, to settle at $3.0315, and in electronic trading carried on regaining ground to stand at $3.0402 per pound by mid-afternoon in New York.