Copper exchange traded funds have plunged on worries Europe’s debt turmoil will further weaken the economy and slow global growth.
The iPath Dow Jones-UBS Copper Subindex Total Return ETN (NYSEArca: JJC) fell about 16% last week. [Copper ETFs Fall on Slowdown Fears]
Copper prices eased to a 14-month low on Monday. Metals with industrial applications such as silver and copper have underperformed gold, which investors are using to protect themselves from currency debasement.
The sell-off in copper is troubling for stock bulls because the metal is seen as a leading indicator for the global economy.
CME Group has raised margin requirements to trade copper, gold and silver.