Copper slipped on the London Metal Exchange as a selloff in technology stocks and higher oil prices fueled concerns about global growth. A disappointing earnings season for tech companies has raised doubts about spending on artificial intelligence, while the risk of renewed US military action against Iran pushed Brent crude to its highest level since April. The concerns prompted a retreat from risk assets at the tail end of a mildly positive week for industrial metals.
"The sharp decline in technology stocks has fueled market skepticism regarding returns on AI investments, leading to a retreat in risk appetite and putting downward pressure on copper," according to a note from Guangzhou Futures Co.
Industrial metals, especially copper, have been caught up in big swings in tech stocks this year, although other factors have also been at play, including uncertainty over US import tariffs and volatile oil prices. Crude climbed on Friday after the Wall Street Journal reported that a top US commander had briefed President Donald Trump on military options for Iran. Copper fell 0.2% to $14,332.50 a ton by 11:30 a.m. Shanghai time. Investors are also monitoring developments at a giant Rio Tinto Group mine in Mongolia that halted underground production after a rockfall injured three people.
The metal is heading for a slight loss in October, snapping three months of gains. Aluminum was little changed at $3,084 a ton, on track for a second monthly decline. Zinc slipped from its highest close since Sept. 25, and is set for a monthly increase.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing