The iPath Dow Jones-UBS Copper ETN (JJC) dropped more than 3% on Wednesday morning to its lowest level in nearly three years. The red metal’s decline is a warning that the global economy could be slowing because of its wide applications in construction and industry.
JJC, an exchange traded note designed to track copper futures, has now fallen 15% for the trailing three months.
“I don’t see a huge pickup in demand coming from Asia,” said Bill O’Neill at commodities trading advisor Logic Advisors, in a Dow Jones Newswires report. “And the overall economic scenario that we’re seeing in the U.S. does not bode well for copper.” [Should You Listen to Copper ETF's Warning?]
Copper prices were down the second straight day following weaker-than-expected data on ADP employment and Chicago manufacturing. Also, a measure of Chinese manufacturing came in below expectations, and China is one of the largest consumers of copper. [Copper ETF Slump Doesn’t Bode Well for Global Markets]
JJC is down 19.5% since Jan. 31 versus a decline of 17.7% for the July futures contract.
iPath Dow Jones-UBS Copper ETN