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Copper Rebounds, But Fundamentals Point to Downside

November 18, 2011 at 8:24 by Vladimir Vyun

Copper rebounded today after yesterday’s decline. Analysts think, though, that bears still have upper hand.

The main reason for traders to be pessimistic is the problems of the European Union. Europe makes up about 19 percent of global copper consumption, therefore its problems is very negative to the industrial metal.

Consumer confidence of Europeans fell to almost two-year low last month, according to the European Commission. The industrial production of the Eurozone contracted 2.0 percent in September.

The MSCI All-Country World Index of stocks declined 11 percent. The Standard & Poor’s GSCI Index of 24 commodities advanced despite the negative fundamentals, rising 3.5 percent.

Settlement on copper was higher today, rising to $3.4020 from $3.3605 per pound as of 8:20 GMT today on COMEX. Yesterday, the price was down from $3.4620 to $3.3605 per pound.

If you have any questions and comments on the commodities today, use the form below to reply.

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