Base Metals Preview: Copper slumps to 3-week low

Copper slumped to a three-week low tracking firm dollar overseas. The dollar index is hovering above 98 mark as investors assessed recent trade deals between the United States, Japan, and the European Union. Investors now turn focus to the outcome of a two-day FOMC policy meeting on Wednesday for further cues. Besides, sharp rise in copper inventories are also weighing on the red metal. LME Copper inventories rose in last session, adding to recent gains after a sharp drop in last month. Inventories jumped 3700 tonnes to 128475 tonnes, hitting seven-week high. Meanwhile, choppy overnight cues from Wall Street also failed to limit losses in the counter which is currently quoting at %5.58 per pound, down 0.55% on the day. The Nasdaq rose 70.27 points or 0.3 percent to 21,178.58 and the S&P 500 inched up 1.13 points or less than a tenth of percent to 6,389.77, while the narrower Dow edged down 64.36 points or 0.1 percent to 44,837.56.

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