|Copper Futures Down on ‘Brexit’ Vote
June 24, 2016 2:16 a.m. ET
LONDON—Copper futures sank in London Friday, as the U.K.’s unexpected vote to leave the European Union heightened investor risk aversion.
The London Metal Exchange’s three-month copper contract was down 3.2% at $4,627 a metric ton in early morning European trade, having hit a four-day low earlier in the session at $4,588 a ton.
Equities plunged indicating investor nerves about the news that “Brexit” would become a reality, with futures for the Dow Jones Industrial Average falling as much as 700 points. Polls recently showed that, with 99% of the voting areas declared, the “leave” camp had won 51.8% of the vote, versus 48.2% for the “remain” camp.
Copper declined $153 a ton in value from its close on Thursday evening as investors pulled their money out of so-called “risk” assets, like copper, in favor of safe havens, like gold.
“The early results from the U.K. referendum are a shock to global markets,” said William Adams, head of research at Fastmarkets, “although the base metals have in recent days run higher, which has provided a cushion that is helping to absorb this morning’s sell-offs.”
All the other base metals were lower at the end of the week. Aluminum was down 2.7% at $1,597 a ton, zinc was down 3.3% at $1,972 a ton, nickel was down 4.4% at $8,815 a ton, lead was down 2.5% at $1,687 a ton and tin was down 1.9% at $16,925 a ton