Base Metals Preview: Copper Corrects Near Rs 470 On MCX

Copper fell sharply on Friday on global trade worries and weak stock markets. US stocks slipped after President Donald Trump announced plans to impose a 25% tariff on $ 50 billion worth of Chinese goods that contain industrially significant technologies. Beijing has also warned that it was ready to respond. COMEX Copper fell to two week low of $ 3.13 per pound- down 2.60% on the day. MCX Copper witnessed a steep fall n evening and closed at Rs 473.70 per kg- down 1.63% on the day.

Poor China economic data also hurt the red metal. Chinese industrial production grew 6.8% in May- slower than the 7% increase logged a month ago, the National Bureau of Statistics reported. The retail sales growth also eased to 8.5% from 9.4%. During the January to May period, fixed asset investment increased (FAI) 6.1% -down from 7% for January-April. Private investment rose at a faster rate than overall growth though. FAI by the private sector rose 8.1% year on year in January-May, up 1.3 percentage points from the growth in the same period last year.