Copper Edges Up, ECB Meeting Eyed

Industry News 11:52:22AM Jun 06, 2012 Source:SMM

SHANGHAI, June 6 (Reuters) - London copper rose on Wednesday, its first trading day this week, benefitting from a weaker dollar as investors looked to the European Central Bank for a possible solution to the euro zone debt crisis which has hurt raw material demand. 

The ECB meeting comes a day after finance ministers from the world's seven major economies discussed financial and fiscal union in Europe and agreed to work together to deal with the problems in Spain and Greece, but took no joint action. 
      
Fundamentals
Three-month copper on the London Metal Exchange rose 0.4 percent to $7,390 a tonne by 0235 GMT, resuming trade after a two-day holiday in the U.K.  
  
The most-active September copper contract on the Shanghai Futures Exchange edged up 0.7 percent to 53,860 yuan ($8,500) a tonne, gaining for a second straight session. 

Although the meeting among finance chiefs of the Group of Seven economies did not yield concrete actions towards resolving the euro zone debt crisis, investors continued to pin their hopes on the region's leaders working out bold measures as the ECB holds its monthly rate-setting meeting later on Wednesday.  

Any policy to manage the crisis will be timely for Spain, which said on Tuesday it was losing access to credit markets and that Europe should help revive its banks.  

Heaping more pressure on Europe's leaders were business surveys showing that all of the euro zone's major economies are now in various states of decline, raising fears that the bloc's financial problems may escalate into a global crisis.
  
German industrial orders slumped more than expected in April, posting their steepest fall since November 2011, data from the Economy Ministry showed on Tuesday, adding to signs of a slowdown in Europe's biggest economy.  

Investors will also look out for signs of whether the U.S. will embark on further monetary easing policies when Federal Reserve chief Ben Bernanke testifies before a congressional panel on Thursday. 

Two top Fed officials, however, suggested the U.S. central bank was not preparing to ease monetary policy at a meeting later this month, saying the economic outlook had not deteriorated to the point where action was warranted.
  
Backing up their opinion was data on Tuesday showing the pace of growth in the vast U.S. services sector edging up in May driven by gains in new orders.  
     
Market News 
Asian shares nudged up on Wednesday but were capped by concerns that Europe's financial strains could intensify without a global response, as Spain warned that it was being shut out of credit markets.  

The euro recovered some ground against the dollar, having fallen after Spain warned it was losing access to credit markets and finance ministers from major economies took no immediate steps to assuage fears about Europe's debt crisis.  
     
    DATA/EVENTS (GMT) 
    1000  Germany   Industrial output mm Apr         
   
    1145  EZ        ECB rate decision    Jun         
    1230  EZ        News conference after policy decision    
    1230  U.S.      Productivity         Q1        
   
    1230  U.S.      Labor costs          Q1          
    1400  U.S.      Federal Reserve Beige Book    
         
  Base metals prices at 0235 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7390.00     29.00     +0.39     -2.76
  SHFE CU FUT SEP2    53860       370     +0.69     -2.71
  HG COPPER JUL2     333.85      4.95     +1.51     -2.84
  LME Alum          1985.75     13.25     +0.67     -1.70
  SHFE AL FUT SEP2    15910       -35     -0.22      0.41
  LME Zinc          1889.50     -0.50     -0.03      2.41
  SHFE ZN FUT SEP2    14800       115     +0.78      0.03
  LME Nickel       16093.00     -7.00     -0.04    -13.99
  LME Lead          1915.00     15.00     +0.79     -5.90
  SHFE PB FUT      15110.00     60.00     +0.40     -1.14
  LME Tin          19600.00    205.00     +1.06      2.08
  LME/Shanghai arb^     920
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3675 Chinese yuan) 
 

Copper Edges Up, ECB Meeting Eyed

Industry News 11:52:22AM Jun 06, 2012 Source:SMM

SHANGHAI, June 6 (Reuters) - London copper rose on Wednesday, its first trading day this week, benefitting from a weaker dollar as investors looked to the European Central Bank for a possible solution to the euro zone debt crisis which has hurt raw material demand. 

The ECB meeting comes a day after finance ministers from the world's seven major economies discussed financial and fiscal union in Europe and agreed to work together to deal with the problems in Spain and Greece, but took no joint action. 
      
Fundamentals
Three-month copper on the London Metal Exchange rose 0.4 percent to $7,390 a tonne by 0235 GMT, resuming trade after a two-day holiday in the U.K.  
  
The most-active September copper contract on the Shanghai Futures Exchange edged up 0.7 percent to 53,860 yuan ($8,500) a tonne, gaining for a second straight session. 

Although the meeting among finance chiefs of the Group of Seven economies did not yield concrete actions towards resolving the euro zone debt crisis, investors continued to pin their hopes on the region's leaders working out bold measures as the ECB holds its monthly rate-setting meeting later on Wednesday.  

Any policy to manage the crisis will be timely for Spain, which said on Tuesday it was losing access to credit markets and that Europe should help revive its banks.  

Heaping more pressure on Europe's leaders were business surveys showing that all of the euro zone's major economies are now in various states of decline, raising fears that the bloc's financial problems may escalate into a global crisis.
  
German industrial orders slumped more than expected in April, posting their steepest fall since November 2011, data from the Economy Ministry showed on Tuesday, adding to signs of a slowdown in Europe's biggest economy.  

Investors will also look out for signs of whether the U.S. will embark on further monetary easing policies when Federal Reserve chief Ben Bernanke testifies before a congressional panel on Thursday. 

Two top Fed officials, however, suggested the U.S. central bank was not preparing to ease monetary policy at a meeting later this month, saying the economic outlook had not deteriorated to the point where action was warranted.
  
Backing up their opinion was data on Tuesday showing the pace of growth in the vast U.S. services sector edging up in May driven by gains in new orders.  
     
Market News 
Asian shares nudged up on Wednesday but were capped by concerns that Europe's financial strains could intensify without a global response, as Spain warned that it was being shut out of credit markets.  

The euro recovered some ground against the dollar, having fallen after Spain warned it was losing access to credit markets and finance ministers from major economies took no immediate steps to assuage fears about Europe's debt crisis.  
     
    DATA/EVENTS (GMT) 
    1000  Germany   Industrial output mm Apr         
   
    1145  EZ        ECB rate decision    Jun         
    1230  EZ        News conference after policy decision    
    1230  U.S.      Productivity         Q1        
   
    1230  U.S.      Labor costs          Q1          
    1400  U.S.      Federal Reserve Beige Book    
         
  Base metals prices at 0235 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7390.00     29.00     +0.39     -2.76
  SHFE CU FUT SEP2    53860       370     +0.69     -2.71
  HG COPPER JUL2     333.85      4.95     +1.51     -2.84
  LME Alum          1985.75     13.25     +0.67     -1.70
  SHFE AL FUT SEP2    15910       -35     -0.22      0.41
  LME Zinc          1889.50     -0.50     -0.03      2.41
  SHFE ZN FUT SEP2    14800       115     +0.78      0.03
  LME Nickel       16093.00     -7.00     -0.04    -13.99
  LME Lead          1915.00     15.00     +0.79     -5.90
  SHFE PB FUT      15110.00     60.00     +0.40     -1.14
  LME Tin          19600.00    205.00     +1.06      2.08
  LME/Shanghai arb^     920
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3675 Chinese yuan)