In a volatile metals day on Tuesday (i.e. today), copper prices declined, moving back towards a four-month low that was reached the day before as commodities were engulfed in a turbulent global selloff of risky assets.
Following a wild opening day of the week that destroyed billions of dollars across international markets, zinc continued to lose ground while aluminium saw a slight increase. Investors are currently monitoring if the drama on Monday, which saw copper hit its lowest level since March, indicates more serious issues to come.
China has been the biggest obstacle for metals in recent months, as confidence has been severely damaged by muted manufacturing and a dismal housing market. Concerns over the US economy possibly experiencing a hard landing now seem to be mounting.
The early trade on Tuesday saw a calmer mood across the board for financial markets, with US stock futures recovering after three days of losses and Japan’s two major share gauges rising strongly.
After giving up earlier gains, copper was 0.7% lower at $8,826.50 a tonne on the London Metal Exchange. Tin and nickel continued to be stable while zinc fell 1.8%.
