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Falling Risk Appetite Dents Copper Futures

Industry News 08:49:29AM Feb 20, 2012 Source:SMM

Feb 17, 2012 NEW YORK (Dow Jones)--Copper futures slipped Friday as some investors moved to the sidelines ahead of a long weekend in the U.S., despite signs of progress in Greece and a weaker euro.

The most actively traded contract, for March delivery, was recently down 2.15 cents, or 0.6%, at $3.7695 a pound on the Comex division of the New York Mercantile Exchange.

A Greek government spokesman said at a briefing that euro-zone ministers are expected to approve the EUR130 billion bailout package. German officials said they dropped plans to delay the full bailout, and the European Central Bank plans to swap its Greek debt holdings for new bonds once the debt-restructuring deal is done.

Copper traders have kept a close eye on Greece. The debt-laden country has battled to stave off a messy default that many fear would trigger an economic crisis in the euro-zone. Copper is widely used in construction and manufacturing and business activity in these sectors would slow amid such developments.

A weaker dollar, which retreated against the euro Friday, also offered copper futures some support. Dollar-denominated copper can attract more buyers among investors who hold other currencies when the greenback eases, as the metal appears less expensive to these buyers.

However, some market participants chose to sell their holdings and move to the sidelines ahead of a three-day weekend in the U.S. Comex floor trading will be closed Monday in observance of President's Day holiday.

U.S. consumer prices rose a seasonally adjusted 0.2% in January from the prior month, and up 2.9% on the year, the Labor Department said Friday. This was the fastest paced increase in how much Americans pay for everything from coffee to health insurance since September, and hints at inflation pressures.

"The fact that the U.S. is the only region to consistently post decent economic data arguably remains a cause for concern rather than celebration, in our view," said Leon Westgate, metals analyst with Standard Bank, in a note.

 

Key Words:  copper 

Falling Risk Appetite Dents Copper Futures

Industry News 08:49:29AM Feb 20, 2012 Source:SMM

Feb 17, 2012 NEW YORK (Dow Jones)--Copper futures slipped Friday as some investors moved to the sidelines ahead of a long weekend in the U.S., despite signs of progress in Greece and a weaker euro.

The most actively traded contract, for March delivery, was recently down 2.15 cents, or 0.6%, at $3.7695 a pound on the Comex division of the New York Mercantile Exchange.

A Greek government spokesman said at a briefing that euro-zone ministers are expected to approve the EUR130 billion bailout package. German officials said they dropped plans to delay the full bailout, and the European Central Bank plans to swap its Greek debt holdings for new bonds once the debt-restructuring deal is done.

Copper traders have kept a close eye on Greece. The debt-laden country has battled to stave off a messy default that many fear would trigger an economic crisis in the euro-zone. Copper is widely used in construction and manufacturing and business activity in these sectors would slow amid such developments.

A weaker dollar, which retreated against the euro Friday, also offered copper futures some support. Dollar-denominated copper can attract more buyers among investors who hold other currencies when the greenback eases, as the metal appears less expensive to these buyers.

However, some market participants chose to sell their holdings and move to the sidelines ahead of a three-day weekend in the U.S. Comex floor trading will be closed Monday in observance of President's Day holiday.

U.S. consumer prices rose a seasonally adjusted 0.2% in January from the prior month, and up 2.9% on the year, the Labor Department said Friday. This was the fastest paced increase in how much Americans pay for everything from coffee to health insurance since September, and hints at inflation pressures.

"The fact that the U.S. is the only region to consistently post decent economic data arguably remains a cause for concern rather than celebration, in our view," said Leon Westgate, metals analyst with Standard Bank, in a note.

 

Key Words:  copper