Big drop for red metal on Friday

Prices dragged down by concerns about slowing economic growth in China Comex copper ended lower on Friday, 08 June 2012. London copper hit a six-month low on Friday, dragged down by concerns about slowing economic growth in top consumer China and the lack of imminent measures to boost the U.S. economy. Three-month copper on the LME fell to as low as $7,264.25 a tonne. It ended lower by 2.8% at $7,284 a tonne on Friday. At Comex, July copper dropped nearly 9 cents, or 2.5%, to close at $3.29 a pound. Prices ended 0.6% lower than the week-ago closing level. Copper was on track to extend its losing streak to a sixth week, its longest such run in two years, as China's surprise interest rate cut reflected the gravity of the slowdown in the world's No. 2 economy that may be confirmed by a raft of data due this weekend. Prices also fell due to a stronger dollar. The dollar index, which weighs the strength of the dollar against a basket of six other currencies rose by 0.3% on Friday. Commodity traders also digested the latest news on the economic front. On Friday, U.S. data covering the month of April showed that the nation's trade deficit shrank as exports retreated for the first time since November, while wholesale inventories gained 0.6% on the month to a seasonally adjusted $483.5 billion. In Germany, exports sank 1.7% in April from a month earlier, marking the first decline in exports this year. China surprised investors on Thursday with its first interest rate cut since late 2008 that initially buoyed financial markets, until worries emerged that the move may be aimed at pre-empting a slew of gloomy economic data for May. Chinese economic data and the potential funding needs for Spain and Cyprus will influence the markets early next week, while the June 17 Greek elections will become a greater influence toward the week's end. Among other metals traded at LME on Friday, alumunium ended 1.1% lower at $1,970/tonne. LME zinc ended lower by 1.8% at $1,874/tonne. LME lead ended 1.2% lower at $1,893/tonne. LME nickel ended 2% lower at $16,260/tonne.