Copper Prices Collapse, World Bank Cuts 2015 Growth Forecasts, Euro hits 9 Year Low
January 14, 2015 6:30 am
Unease over the global economy engulfed commodities and dented Asian equities on Wednesday, while the Euro loitered near nine-year lows as investors bet the European Central Bank was just a week away from launching a new stimulus campaign. U.S. stocks ended down slightly in a volatile session on Tuesday, led by a drop in materials and energy shares following further weakness in commodity prices. The Dow closed 27 points lower at 17,613 and the S&P500 closed 5 points lower at 2,023.
Yesterday was a tough one for the Euro; the single currency was stuck at $1.1780 after reaching a low not seen since December 2005 at $1.1753. Against the Yen, the Euro slumped to its lowest in over two months around 138.17.
Brent has lost 7% and U.S. crude 5%. On Wednesday, Brent gave up early gains and fell another 40 cents to $46.19 per barrel, while U.S. crude shed 46 cents to $45.43. The yellow metal was a shade softer at $1,230.00 an ounce on Wednesday after touching a three-month peak. Copper futures dived 6.2% to $5,499 a tonne when major chart support cracked and triggered a host of stop-loss sales. The metal is often considered a barometer of industrial demand, so the slump leant extra gravitas to news that the World Bank had cut its 2015 growth forecasts blaming sluggishness in the Euro zone, Japan and some major emerging economies.
Due to the collapse of Copper, mining stocks are getting hammered today with the likes of Rio, BHP, Antofagasta who are all heavily exposed to the metal down anywhere between 5 – 10% in early trade. The worst performer is Vendanta Resources who are down 19% trading at 390p per share in early trade.
Unease over the global economy engulfed commodities and dented Asian equities on Wednesday, while the Euro loitered near nine-year lows as investors bet the European Central Bank was just a week away from launching a new stimulus campaign. U.S. stocks ended down slightly in a volatile session on Tuesday, led by a drop in materials and energy shares following further weakness in commodity prices. The Dow closed 27 points lower at 17,613 and the S&P500 closed 5 points lower at 2,023.
Yesterday was a tough one for the Euro; the single currency was stuck at $1.1780 after reaching a low not seen since December 2005 at $1.1753. Against the Yen, the Euro slumped to its lowest in over two months around 138.17.
Brent has lost 7% and U.S. crude 5%. On Wednesday, Brent gave up early gains and fell another 40 cents to $46.19 per barrel, while U.S. crude shed 46 cents to $45.43. The yellow metal was a shade softer at $1,230.00 an ounce on Wednesday after touching a three-month peak. Copper futures dived 6.2% to $5,499 a tonne when major chart support cracked and triggered a host of stop-loss sales. The metal is often considered a barometer of industrial demand, so the slump leant extra gravitas to news that the World Bank had cut its 2015 growth forecasts blaming sluggishness in the Euro zone, Japan and some major emerging economies.
Due to the collapse of Copper, mining stocks are getting hammered today with the likes of Rio, BHP, Antofagasta who are all heavily exposed to the metal down anywhere between 5 – 10% in early trade. The worst performer is Vendanta Resources who are down 19% trading at 390p per share in early trade.
Related Posts: