13th November 2013
Copper has fallen sharply in commodities trading markets this morning (November 13th), after the four-day summit of top officials from the Chinese Communist Party passed without issuing a clear policy direction.
It had been expected that the Third Plenum meeting would be followed by a detailed explanation of the economic reforms to be undertaken over the course of the next decade.
However, leaders simply insisted they will allow the free market to play a more significant role in the country's economy.
Last year, China was the world's largest consumer of copper, accounting for 40 per cent of the world's supply.
As a result, the lack of clarity disappointed investors, who were already coming to terms with comments from Federal Reserve policymakers indicating the central bank may look to reduce its asset purchases next month.
The Fed's quantitative easing programme is seen by many analysts as the driving force behind higher commodity prices this year, as it tends to keep the dollar lower in forex trading markets.
On the New York Mercantile Exchange, copper for December delivery declined by 1.35 per cent to $3.191 per pound.
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