Base Metals Preview: Copper Remains Tepid After Recent Debacle

Copper extended losses further today. The metal 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 is quoting at $ 3.11 per pound- down 0.51% on the day – lingering around its two week low. MCX Copper futures closed at Rs 4696.25 per kg- down around 1% on the day.

Equities slipped in Asia and Europe amid sustained global trade worries and kept continued pressure on commodities. DOW also lost 100 points. The US National Association of Home Builders released a report on Monday unexpectedly showing a deterioration in U.S. homebuilder confidence in the month of June. The report said the NAHB/Wells Fargo Housing Market Index dipped to 68 in June from 70 in May.

In other economic data, the average asking price for a house in the United Kingdom was up 0.4% on month in June, property tracking website Rightmove said. That followed the 0.8% increase in May. On a yearly basis, house prices advanced 1.7%, accelerating from 1.1% in the previous month. Japan logged its first trade deficit in three months in May on a surge in imports of aircraft and aircraft engines from the United States, data from Japans finance ministry showed Monday. Japan posted a trade deficit of 578.3 billion Yen in May.