Copper Hits Eight Month-Low as Euro Tumbles-Shanghai Metals Market

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Copper Hits Eight Month-Low as Euro Tumbles

Industry News 04:26:22PM Jun 07, 2010 Source:SMM

LONDON June 7 -- Industrial metals tumbled on Monday, with copper dropping to its lowest in eight months as the euro dipped and investors sold off riskier assets in the face of mounting fears about the health of the eurozone economy.

Concern that Hungary may be next casualty of the growing debt crisis in Europe and Friday's disappointing U.S. employment data drove investors out of commodities and equities, with oil falling almost 2 percent.

"We had a very weak close on Friday due to disappointing U.S. data and then over the weekend news about Hungary further unsettled the markets, " an LME trader said.

"We can see below $6,000 a tonne, euro seems to be in a mess and it might affect bigger countries like the U.S.," he added.

Investors are bracing for another volatile week in markets with more U.S. economic data on the way and a slew of Chinese indicators also due out including trade, industrial output and urban investment.

PRICES

* Copper for three months delivery on the London Metal Exchange was at $6,105 a tonne by 0730 GMT, after falling to an eight month-lowe of $6,076.25 a tonne versus Friday's $6,280.

* Three-month aluminium was at $1,843 a tonne from $1,881.

DATA/EVENTS

* U.S. April consumer credit data due at 1900 GMT.

* Germany April industrial orders due at 1000 GMT.

* PARIS - ECB Governing Council member Ewald Nowotny takes part at a conference on Europe and the Financial crisis (0700 GMT).

* BEIJING - Mines and Money Beijing Conference (to June 9).

MARKET NEWS

* The euro fell broadly on Monday, hitting its lowest in more than four years against the dollar with investors increasingly nervous about more slides in the currency after a clear break below a chart support point.

* Stocks and commodities fell after disappointing U.S. jobs data on Friday and angst about euro zone debt problems fed fears the world economy may falter in its recovery. Japan's Nikkei index .N225 had its worst day in 14 months, falling 3.8 percent. The MSCI index for Asian stocks outside Japan .MIAPJ0000PUS also shed 3.8 percent.

* Oil fell as much as 2.8 percent to below $70 on Monday after disappointing U.S. jobs data and warnings about Hungary's economy re-ignited concern about energy demand growth and Europe's debt crisis.

* European shares fell sharply on Monday for the second consecutive session on worries over euro zone debt problems after Hungary said its debt problems were similar to Greece on Friday, with banks the major losers.

FUNDAMENTALS

* Lead poisoning caused by illegal gold mining has killed 163 Nigerians, most of them children, in remote villages in the past few months, a government official said on Friday.

* While much attention is paid to the impact of speculators on the oil and gold markets, many smaller commodity markets are far more exposed to the whims of large funds, according to an analysis of regulatory data.

TECHNICALS

* Copper support at $5,958, resistance $6,150 and 14-day RSI at 22.9.

* Aluminium support at $1, 811, resistance at $1,950 and 14-day RSI 22.5.

 

 

Key Words:  Aluminum Al  copper Cu 

Copper Hits Eight Month-Low as Euro Tumbles

Industry News 04:26:22PM Jun 07, 2010 Source:SMM

LONDON June 7 -- Industrial metals tumbled on Monday, with copper dropping to its lowest in eight months as the euro dipped and investors sold off riskier assets in the face of mounting fears about the health of the eurozone economy.

Concern that Hungary may be next casualty of the growing debt crisis in Europe and Friday's disappointing U.S. employment data drove investors out of commodities and equities, with oil falling almost 2 percent.

"We had a very weak close on Friday due to disappointing U.S. data and then over the weekend news about Hungary further unsettled the markets, " an LME trader said.

"We can see below $6,000 a tonne, euro seems to be in a mess and it might affect bigger countries like the U.S.," he added.

Investors are bracing for another volatile week in markets with more U.S. economic data on the way and a slew of Chinese indicators also due out including trade, industrial output and urban investment.

PRICES

* Copper for three months delivery on the London Metal Exchange was at $6,105 a tonne by 0730 GMT, after falling to an eight month-lowe of $6,076.25 a tonne versus Friday's $6,280.

* Three-month aluminium was at $1,843 a tonne from $1,881.

DATA/EVENTS

* U.S. April consumer credit data due at 1900 GMT.

* Germany April industrial orders due at 1000 GMT.

* PARIS - ECB Governing Council member Ewald Nowotny takes part at a conference on Europe and the Financial crisis (0700 GMT).

* BEIJING - Mines and Money Beijing Conference (to June 9).

MARKET NEWS

* The euro fell broadly on Monday, hitting its lowest in more than four years against the dollar with investors increasingly nervous about more slides in the currency after a clear break below a chart support point.

* Stocks and commodities fell after disappointing U.S. jobs data on Friday and angst about euro zone debt problems fed fears the world economy may falter in its recovery. Japan's Nikkei index .N225 had its worst day in 14 months, falling 3.8 percent. The MSCI index for Asian stocks outside Japan .MIAPJ0000PUS also shed 3.8 percent.

* Oil fell as much as 2.8 percent to below $70 on Monday after disappointing U.S. jobs data and warnings about Hungary's economy re-ignited concern about energy demand growth and Europe's debt crisis.

* European shares fell sharply on Monday for the second consecutive session on worries over euro zone debt problems after Hungary said its debt problems were similar to Greece on Friday, with banks the major losers.

FUNDAMENTALS

* Lead poisoning caused by illegal gold mining has killed 163 Nigerians, most of them children, in remote villages in the past few months, a government official said on Friday.

* While much attention is paid to the impact of speculators on the oil and gold markets, many smaller commodity markets are far more exposed to the whims of large funds, according to an analysis of regulatory data.

TECHNICALS

* Copper support at $5,958, resistance $6,150 and 14-day RSI at 22.9.

* Aluminium support at $1, 811, resistance at $1,950 and 14-day RSI 22.5.

 

 

Key Words:  Aluminum Al  copper Cu