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BASE METALS: Copper Climbs On Weak Dollar, Bright Europe View
Jul 1,2011 10:17CST
industry news
Source:SMM

Jun 30, 2011 (Dow Jones Commodities News via Comtex) --NEW YORK (Dow Jones)--Copper futures forged higher Thursday morning on a weaker dollar and lingering hopes of financial stability in Europe.

The most actively traded contract, for September delivery, was recently up 3.35 cents, or 0.8%, at $4.2575 a pound on the Comex division of the New York Mercantile Exchange.

July-delivery copper was up 3.75 cents, or 0.9%, at $4.2470 a pound.

Investor risk appetite has improved after Greece took crucial steps to avoid a sovereign debt default. The euro-zone member has struggled with its debts despite a bailout from the European Union and the International Monetary Fund last year.

The Greek parliament passed a five-year austerity package on Wednesday, which opened the door to further financial aid from fellow euro-zone members.

Copper futures, and other assets perceived as riskier than safe-haven assets like treasurys, have rallied amid relief over Greece as investors again look for opportunities to earn a higher return.

"Now that the worst of the uncertainty surrounding Greece has been dispelled, market players should start to concentrate on fundamental data again," said analysts at Commerzbank.

The Greek vote also continues to feed the euro, which has rallied against the dollar. The euro was recently at $1.4462, up from $1.4428 late Wednesday in New York.

Copper futures are denominated in dollars and appear cheaper to investors using foreign currencies like the euro when the greenback weakens.

 

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