Dec 12, 2011 LONDON (Dow Jones)--Base metals closed lower on the London Metal Exchange Monday after sliding in line with broader risk markets on fresh worries over Europe.
Commodities and equities moved into the red as investors digested the results last week's European Union summit, and a weak euro soured the appeal of dollar-denominated assets.
Comments from Fitch Ratings, which said it expects a significant economic downturn across the euro zone region in the short term, also soured investor appetite, a trader said.
LME three-month copper ended the PM kerb at $7,606 a metric ton, down 2.7% on Friday's close.
November Chinese copper import figures were strong, but had a muted impact as analysts put the rise down to restocking and suggested it isn't a sign of buoyant demand.
"There is no doubt, in our view, that events in Europe, and uncertainties over a potential political changing of the guard next year have impacted sentiment for many Chinese," added Credit Suisse in a note.
Turnover was thin, adding to the volatility, as investors took to the sidelines ahead of the end-of-year holiday season.
Short-term technical indicators for copper are meanwhile modestly bearish, said Sucden Financial analyst Jack Pollard. The market's "broad range may hold potential for tests of weakness," he said in a report.
Technical support for aluminum at $2,021/ton may also be tested in the short term--a test that should give signals about the strength of the overall trading range, added Sucden analyst Brenda Sullivan.
Prices in dollar a metric ton.
3 Months Metal Bid-Ask Change from
Friday PM kerb
Copper 7606.0-7607.0 Dn 209
Lead 2105.5-2106.0 Dn 59.5
Zinc 1932.0-1933.0 Dn 70
Aluminum 2014.0-2015.0 Dn 51
Nickel 18450.0-18500.0 Dn 150
Tin 19850.0-19900.0 Dn 395
Aluminum Alloy 1925.0-1945.0 Dn 15
Aluminum Alloy-NASAAC 2135.0-2155.0 Dn 45