On July 24, in the face of falling global equity markets, copper reached its lowest price since 2009. To add to that, the data coming from Europe and China is still below most analysts and investors expectations, is also dragging oil prices further down, further exacerbating concerns over global economic growth.
Very Few Bright Spots
The price of copper now at its lowest levels in six years, with three-month copper on the LME selling for $5,191.50 a ton, a level not seen since July 2009. This came as a direct result of figures showing that Chinese manufacturing orders showing their biggest drop in over a year. The reduced Chinese manufacturing requirements are causing worries that stockpiles of metals are mounting.
Added to that, the biotech industry is starting to lose some investor confidence. As a result the S&P 500, industrial average for the Dow Jones fell 163.92 points (0.92%) to 17,568 and the Nasdaq Composite dropped 57.87 points (1.12%) to 5,088.54 at the end of last week.
On the positive side, Amazon.com posted unexpected profits for the last quarter, causing its shares to jump to a record high of $580.57. Vodafone, a British telecom firm saw a jump in its stock price after its results showed significant improvements across major markets in Britain and Germany.
US Dollar Still on the Rise
Economic uncertainty in Europe and China is still affecting the US dollar and it is turning into a safe haven for many investors. Despite slipping back slightly earlier in the week, on Friday it went up against most other major currencies. The US dollar index was up 0.2 percent at $97.274 in late US trading, pruning its weekly decline to 0.6%.
The Australian dollar, on the other hand has not been fairing that well. It has dropped down to a six year low, falling more than 1% to $0.7280. As major exporters, both the Australian and Canadian dollars have suffered from the decline in prices in different commodities, cooper and oil among them.