US MIDDAY: copper drops to eight-month low

Copper posted its lowest close in more than 8 months on Wednesday, as investors sold out of the industrial metal along with global equity markets in response to growing concerns about the demand outlook for metals in a slowing economy. In some cases, investors sold off copper holdings to raise money to meet margin calls in equity and other markets. With copper generally regarded as an indicator of global growth, copper often trails moves in equity markets.
Benchmark September copper futures also finished at a low dating back to December 1. It settled down 8.15 cents, or 2.05 percent, at $3.8885 per lb., having risen earlier to $4.0730 per lb. Both copper and stock markets responded negatively to the Fed's slower growth reading, then suddenly enthusiastically to the promise of low interest rates and the implication that it would take further stimulative measures if necessary. As copper prices fell, more players moved to exit positions taken out at much higher levels and the decline fed on itself.