Copper Drops On Weak Euro Area Data
Copper prices fell by 1.48 per cent on Thursday after Euro zone retail sales fell more than expected in March against February as consumers cut purchases of food, drinks and tobacco, the European Union’s statistics office said signaling weak sentiment in the region which reduced the demand for the metal. Retail sales, a proxy for household spending, decreased 0.5 percent in March month-on-month in the 19-country currency bloc, Eurostat said. Economists polled by Reuters had forecast a much smaller decrease of 0.1 percent. At the MCX, copper futures for June 2016 contract were trading at Rs.320.55 per 1 kg, down by 1.48 per cent, after opening at Rs. 324.85 against the previous closing price of Rs. 325.35. It touched the intra-day low of Rs. 320.40 till the trading.
Sentiment weakened further due to the surge in the copper stockpiles at the London Metal Exchange (LME) on account of the weak demand for the commodity. LME copper stocks rose by 225 metric tonnes to 156725 metric tonnes as on May 5, 2016.
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