(IBTimes) - In addition to building Euro zone contagion concerns, copper may be reacting negatively to the prospect of further economic slowing in both the US and China. Many traders were surprised that the copper market wasn't able to benefit from news of a 50 point cut in Chinese bank reserve requirements over the weekend, which could highlights the entrenched expectation of global economic slowing in the marketplace. While copper might have found support from news of lower Kazakhstan copper production during the first four months of 2012, some traders feel that the copper market is currently focused on the ebb and flow of demand and therefore supply might have become a secondary focus. In that respect, the copper market may have discounted another decline in daily LME copper stocks of 2,975 tons overnight as another European contagion event could be unfolding during the near term.
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