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MTECHTIPS:-Copper tumbles to 6-year low amid China stock market bloodbath

MTECHTIPS:-Copper tumbles to 6-year low amid China stock market bloodbath

Copper prices plunged to the lowest level in six years on Monday, as steep declines on Chinese stock markets dampened appetite for the red metal. Copper for September delivery on the Comex division of the New York Mercantile Exchange dropped to an intraday low of $2.232 a pound, a level not seen since July 2009, before trading at $2.246 during morning hours in London, down 5.7 cents, or 2.49%. The Shanghai Composite tumbled almost 9% to a six-month low on Monday, wiping out this year’s gains. The drop came amid growing concerns over China’s slowing economy and worries that Beijing may allow the yuan to continue to depreciate, fueling fears over a currency war that could destabilize the global economy. Market players are also concerned that the plunge in the stock market could spread to other parts of the Chinese economy, triggering fears that the Asian nation’s demand for the industrial metal will decline. China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Elsewhere, gold futures for December delivery dipped $5.60, or 0.48%, to trade at $1,154.00 a troy ounce. Losses were limited amid receding expectations that the Federal Reserve will raise U.S. interest rates next month.
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