LONDON- Copper prices lurched lower on Friday after US jobs data hardened expectations that US Federal Reserve officials would stick to their drive to crush inflation.
Three-month copper on the London Metal Exchange (LME) dropped 1.5 percent to $7,490.50 a ton, extending losses to a third session.
USComex copper futures slipped 1.3 percent to $3.40 a lb.
Solid US job growth and a decline in the unemployment rate in Friday’s data reinforced views that more monetary tightening would be needed to contain inflation.
Hawkish Federal Reserve speakers on Thursday reiterated that more big increases to interest rates were likely, which investors fear could tip the economy into recession.
“Everything is slowing. There’s no doubt the impact higher interest rates is likely to have,” said John Meyer, head of research at SP Angel in London.
Despite the macro-economic gloom, underlying supply/demand fundamentals are robust, Meyer added.
“If you look at the way copper’s been trading, it’s been extraordinarily resilient given the way the world is slowing. And that says to me there’s ongoing demand.”
