US copper ended lower, capping the longest slide in two months, after US jobless claims rose unexpectedly last week, igniting fresh concerns that the recession is damping demand for industrial metals.
The metal extended its fall after a report revealed Americans fell behind on their mortgage payments at a record pace in the second quarter, a sign that the housing market has yet to stabilize. Copper dropped for the fifth straight session.
Copper futures for December delivery lost 1.7 cents, or 0.6%, to $2.754 a pound on the Comex division of the New York Mercantile Exchange. The industrial metal has declined 6% since August 13.
Earlier, the metal gained as much as 1.4% as equities rebounded in China, the world’s biggest user of the metal. The metal dropped this week partly on concern that China’s economic recovery is stalling.
On the London Metal Exchange, copper for three-month delivery gained $68, or 1.1%, to $6,049 a metric tonne ($2.74 a pound).