Base Metals Preview: COMEX copper plunges to $6.5 per pound as global tensions weigh on demand outlook

COMEX copper plunged on Wednesday morning in Asia tracing significant downside in overnight US equities and racing dollar overseas. The major averages on Wall Street ended the day off their lows of the session but still firmly negative. The Nasdaq slumped 271.11 points or 1 percent to 26,099.77, the Dow slid 419.02 points or 0.8 percent to 52,766.88 and the S&P 500 fell 54.67 points or 0.7 percent to 7,631.47. Meanwhile, global bond yields kept inflationary risks and interest rate concerns in focus, weighing on the demand outlook. Potential rate hikes amid soaring inflation concerns leading to higher borrowing costs could eventually slow global economic growth, dampening demand for industrial metals such as copper. The red metal is currently quoting at $6.51 per pound, down 1.31% on the day.

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