BASE METALS: Close Mostly Lower After Following Stocks Into The Red

Aug 10, 2011 (Dow Jones) -- --LME metals slide into PM close as stock markets tumble

--LME copper ends session 1.6% lower

By Rhiannon Hoyle

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--Base metals closed mixed Wednesday after fresh euro zone debt fears and a slump across the stock markets dragged them from their earlier highs.

Three-month copper closed the session down 1.6% at $8,590 a metric ton, after having risen as high as $9,005/ton earlier in the day.

Risk appetite took a hit during afternoon trading hours in London as investors fretted over European banks and digested the U.S. Federal Reserve's downbeat assessment of the economy.

"This morning's rise appears to have been nothing more than a dead cat bounce, and it looks like we could see further falls ahead," said a trader. "One thing's for sure, these fiscal problems [in Europe and the U.S.] aren't going anywhere."

Three-month lead, however, managed to hold in positive territory, while three-month zinc finished the session unchanged.

Prices in dollar a metric ton.
3 Months Metal                Bid-Ask       Change from
                                          Tuesday PM kerb
Copper                     8590.0-8595.0     Dn 141
Lead                       2275.0-2280.0     Up 21
Zinc                       2100.0-2100.5     Unchanged
Aluminum                   2396.0-2396.5     Dn 10
Nickel                    20970.0-20980.0    Dn 235
Tin                       22745.0-22750.0    Dn 5
Aluminum Alloy             2260.0-2270.0     Unchanged
Aluminum Alloy-NASAAC      2440.0-2445.0     Unchanged