Base Metals Preview: COMEX Copper Turns Lower As US Equities Tank

6 Jan 2022 , 09:38 AM

COMEX Copper fell sharply yesterday on weak US equities. After reaching a new record intraday high, the Dow fell following the release of the a hawkish US Fed minutes. The DOW lost 1.1% to close at 36,407.11. The Nasdaq plunged 3.3% to 15,100.17 and the S&P 500 tumbled nearly 2% to 4,700.58. COMEX Copper gave up around 1.5% to break under $4.40 per pound and currently trade around $4.38 per pound, down 0.23% on the day. European economic cues stayed weak. Economic growth in the euro area eased to a nine-month low during December, resuming a slowdown trend amid a resurgence of COVID-19 infections. This had a notable effect on the service sector, restricting increases in both activity and new business. Meanwhile, manufacturing output growth remained subdued as supply-related disruptions continued to impede production schedules. After accounting for seasonal factors, the IHS Markit Eurozone PMI Composite Output Index fell to 53.3 in December, down from 55.4 in November, to signal the softest expansion in combined manufacturing and services output since March. The IHS Markit Eurozone PMI Services Business Activity Index fell to its lowest level since April in December. At 53.1, down from 55.9 in November, the latest survey data signalled a renewed slowdown in growth at eurozone services firms as increasing COVID-19 infections weighed on the performance of the sector.

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