A copper exchange traded note fell 1% on Tuesday in light trading on worries over China’s economic growth and the Eurozone debt crisis, snapping a four-day winning streak.
Copper ETFs are trading near their lows for the year as the commodity has been hit hard in 2011 on debt fears and signs the global economy is sputtering again.
The iPath Dow Jones UBS Copper ETN (NYSEArca: JJC) slipped 1% in morning trade to open the holiday-shortened week, and is down 25% year to date. The London Metal Exchange was closed on Tuesday.
China is the largest consumer of copper, followed by Europe. The industrial metal, which is seen as a leading indicator for the global economy, fell Tuesday as investors worried that Eurozone countries may see further credit downgrades, reported Forexpros.
Meanwhile, China said it expects industrial growth to slow in 2012.