Copper futures edged lower Thursday, settling at the lowest price in seven weeks as investors continued to cash out of commodities on the view that Europe's financial turmoil would curb demand for raw materials.

Copper had traded higher earlier in the day, as a rebound in the euro eased the pressure on dollar-denominated futures and other investors saw a bargain in the market a day after futures stumbled by nearly 5%. But those gains faded after the dollar recovered from its early lows.

The most actively traded copper contract, for March delivery, fell 1.15 cents, or 0.4%, to settle at $3.2670 pound on the Comex division of the New York Mercantile Exchange, the lowest settlement price since Oct. 21.

Futures tumbled Wednesday, as the euro's drop below the key $1.30 level and rising Italian borrowing costs spooked investors and spurred a flight from commodities. Gold crashed through the $1,600 mark and settled at a five-month low, and Nymex crude oil sank by more than 5%.

Markets were calmer Thursday after a successful Spanish bond auction and some better-than-expected economic data, but investors remained cautious toward raw materials.

Europe "is still standing," Kitco Metals analyst Jon Nadler said in a note. "But its woes are making many a trader seek total safety, even at the expense of any returns."

Copper's fall Thursday came as readings on manufacturing activity in China and the euro zone showed the sectors continued to contract in December, albeit at a slower pace than in November.

In the U.S., the number of workers filing new applications for unemployment benefits fell to the lowest level since May 2008, a sign that the long-struggling U.S. labor market was improving.

Copper is sensitive to the economic outlook because of its widespread uses in construction and manufacturing. Prices have generally tracked investor sentiment toward Europe's debt crisis in recent weeks, as a credit crunch there could shackle the industrial economy.

"Given the run of weakness across markets in recent days, prices are looking oversold," said William Adams, head of research with metals research service FastMarkets. "We would not be surprised to see some rebounds, as long as the data and news flow are not too bearish."

 
Copper settlements (ranges include electronic and pit trading): 
Dec   $3.2595; down 1.15 cents; Range $3.2530-$3.3100 
March $3.2670; down 1.15 cents; Range $3.2325-$3.3300

-By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com

Freeport McMoRan (NYSE:FCX)
Historical Stock Chart
Von Jun 2024 bis Jul 2024 Click Here for more Freeport McMoRan Charts.
Freeport McMoRan (NYSE:FCX)
Historical Stock Chart
Von Jul 2023 bis Jul 2024 Click Here for more Freeport McMoRan Charts.