London copper prices dropped to their lowest in nearly eight weeks as concerns over the economic impact of a new coronavirus grew after the death toll in China jumped to 80.
On the London Metal Exchange, prices of three-month copper, widely used as a gauge of economic health, were down as much as 1.9 percent at $5,812 a ton, their lowest since Dec. 4, 2019. Last week, the contract posted its steepest weekly loss in five years, down 5.5 percent.
China said the total number of confirmed cases in the country had risen about 30 percent to 2,744, while the death toll grew to 80 by Monday from a previous 56 reported in the weekend.
The Chinese government, as a result, said it would extend the week-long Lunar New Year holiday by three days to Feb. 2 in a bid to slow the virus spreading.
“The market is reacting to more risk-off news over weekend. Fingers crossed we will get good earning reports this week from US companies or else the panic selling will be even worse,” said a base metals trader.
“The additional holiday is another (period) of economic activity shaved off this year’s gross domestic product. Until the … holidays are over, metal prices will just track the virus news and supportive measures,” the trader said. — Reuters
