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Copper Loses Value on China, Oil Gains on NFP

March 8, 2014 at 6:02 by Vladimir Vyun

Copper sank after China experienced the first company default in history. Shanghai Chaori Solar Energy Science & Technology Co. failed to repay interest on its bonds, leading to fears that more defaults may follow. Such concerns were not healthy for the commodity markets and copper was especially vulnerable as China is the biggest consumer of the metal. Copper lost 9.2 percent of its value this year, being the worst performer among raw materials. Contract for delivery of copper in three months sank as much as $268 (3.8 percent) to $6,782 per metric ton on LME yesterday.

Meanwhile, crude oil managed to log gains as US nonfarm payrolls grew more than was expected, improving the outlook for the US economy. US employment demonstrated growth by 175,000 last month, while experts have predicted an increase at around 150,000. Of course, the positive data increases chances for continuous stimulus reduction from the Federal Reserve. The dollar rallied on such prospects, but it did not deter the rally of oil prices. April futures for delivery of Brent crude oil rose $0.9 (0.83 percent) to close at $109.0 per barrel on ICE.

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