Metals News
Copper Boosted by Hopes of Spanish Banks Rescue
industry news
May 8,2012

SHANGHAI, May 8 (Reuters) - London copper rose on Tuesday as the London Metal Exchange resumed trading after a one-day holiday, with sentiment improving on hopes Spain would use public funds to bolster its struggling banks. 

But investor mood remained cautious on persistent worries over the global economy, especially in the euro zone where elections in Greece cast doubts on the country's commitment to austerity measures. Key China data due this week is also expected to keep traders on their toes.      
Three-month copper on the London Metal Exchange rose 0.5 percent to $8,216 a tonne by 0114 GMT, after falling 0.7 percent on Friday. 

The most-active August copper contract on the Shanghai Futures Exchange gained 0.4 percent to 57,820 yuan ($9,200) a tonne, after falling 1.4 percent in the previous session.   
Rodrigo Rato stepped down on Monday as chairman of ailing Spanish lender Bankia SA, helping to clear the way for a rescue plan involving the use of public funds to help troubled Spanish banks. The government hopes this will persuade international investors of Spain's financial stability.
But elsewhere in the euro zone, a first attempt to form a new Greek government collapsed in less than a day on Monday after a shock election which left gaping questions over the country's ability to avert bankruptcy and stay in the euro.
Despite a rising chorus of opposition to Berlin's austerity policies that reached a crescendo in Sunday's elections in Greece and France, Germany is ruling out any substantive shift in its approach to Europe's debt crisis.
China will release a slew of data for April this week, including figures for trade, inflation and industrial output.
Market News 
Shares and riskier assets recovered on Tuesday from the previous day's plunge, as sentiment improved on hopes Spain would use public funds to bolster its struggling banks, although wariness remained over Greece.  

The euro slid across the board on Monday after the outcome of elections in Greece and France cast doubt on the political will and commitment to austerity plans regarded as key to tackling the euro zone debt crisis.  
1000  Germany   Industrial output mm        Mar        
1145  U.S.      ICSC chain stores yy        Weekly   
1255  U.S.      Redbook retail sales        Weekly   
  Base metals prices at 0114 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            8216.00     41.00     +0.50      8.11
  SHFE CU FUT AUG2    57820       230     +0.40      3.94
  LME Alum          2080.50     13.50     +0.65      3.00
  SHFE AL FUT AUG2    16275        00     +0.00      2.75
  HG COPPER JUL2     373.75     -3.60     -0.95      8.77
  LME Zinc          1998.00      2.00     +0.10      8.29
  SHFE ZN FUT AUG2    15510        60     +0.39      4.83
  LME Nickel       17529.00    -46.00     -0.26     -6.31
  LME Lead          2106.00      6.00     +0.29      3.49
  SHFE PB FUT         15715         5     +0.03      2.78
  LME Tin          21385.00    -65.00     -0.30     11.38
  LME/Shanghai arb    2691
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month

 ($1 = 6.3079 yuan) 

London copper; rise Tuesday
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