LME metals have hit a record low for the past four months with copper primarily leading the downfall. The rest of the metals are following this pattern with nickel and tin being especially weak. In Asia fund selling and significant weakness emerging from the Chinese steel and iron ore future complexes are causing selling to be just as intense. For example, Shanghai copper is hitting its steepest daily drop in five months.
Volatility has also risen across a number of other markets. The Greek voting results came in strongly on the “No” side making the issue considerably more unpredictable going forward.
The Euro initially sank on the news initially due to the reaction in the markets, getting to a low of $1.0967 at one point in early Asian trading. Soon after it recovered somewhat to currently trade at about $1.1010.
All in all, we remain in a volatile situation with markets for copper, nickel and tin tending towards a weaker position going forward.