London Copper Steadies; Euro Zone Eyed

Industry News 10:24:43AM Jun 19, 2012 Source:SMM

SHANGHAI, June 19 (Reuters) - London copper was steady on Tuesday, after ending slightly down in the previous session when an early euphoria over a victory for Greece's pro-bailout parties soon gave way to worries about Spain's shaky finances and wider problems in the global economy.

Base metals had risen broadly early on Monday after the Greek poll outcome, with copper climbing to its highest in almost three weeks.
               
Fundamentals
Three-month copper on the London Metal Exchange edged up 0.1 percent to $7,520 a tonne by 0105 GMT after slipping less than a dollar on Monday. Prices hit a high of $7,615 in the prior session, the highest since May 30.

The most-active October copper contract on the Shanghai Futures Exchange inched down 20 yuan to 54,940 yuan ($8,600) a tonne, after rising slightly on Monday.

A relief rally on financial markets after Sunday's Greek vote quickly fizzled out as it became clear that the New Democracy party of Antonis Samaras had failed to win a strong mandate to implement the big spending cuts and tax increases demanded by the European Union and the IMF under a bailout deal.

Spain called for the European Central Bank to fight financial market pressures on the euro zone, and Italy said more must be done to shore up the bloc after the Greek election result failed to ease the strain on both countries, whose borrowing costs have shot up. 

Yields on both Italian and Spanish bonds rose on Monday, with Spain's 10-year yield climbing above the 7 percent mark at which other highly indebted euro zone nations were forced to seek bailouts.

Euro zone paymaster Germany signalled on Monday it may be willing to grant Athens more time to meet its fiscal targets to avert a catastrophic euro exit.

World leaders pressured Europe at the Group of 20 Nations Summit on Monday to take ambitious new steps to resolve its debt crisis.     
      
Market News
Asian shares slipped on Tuesday while the euro held most of its losses from the previous session as the post-Greek election relief rally quickly ran out of steam. Investors are now focusing on rising Spanish and Italian bond yields signalling that European leaders still have much to do to contain the euro zone debt crisis. 
       
    DATA/EVENTS (GMT)
0900  Germany   ZEW economic sentiment  Jun      
1145  U.S.      ICSC chain stores       Weekly   
1230  U.S.      Building permits        May       
1230  U.S.      Housing starts          May     
1255  U.S.      Redbook retail sales    Weekly  
U.S. Federal Reserve starts two-day policy meeting
   
                                                              
  Base metals prices at 0105 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7520.00     10.00     +0.13     -1.05
  SHFE CU FUT OCT2    54940       -20     -0.04     -1.24
  LME Alum          1932.00      2.00     +0.10     -4.36
  SHFE AL FUT OCT2    15795       -50     -0.32     -0.28
  HG COPPER JUL2     339.60      0.05     +0.01     -1.16
  LME Zinc          1894.00     14.00     +0.74      2.66
  SHFE ZN FUT SEP2    14950       -55     -0.37      1.05
  LME Nickel       16720.00     70.00     +0.42    -10.64
  LME Lead          1905.00     10.00     +0.53     -6.39
  SHFE PB FUT         15000      -135     -0.89     -1.90
  LME Tin          19500.00      0.00     +0.00      1.56
  LME/Shanghai arb     771
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3570 Chinese yuan)
 

London Copper Steadies; Euro Zone Eyed

Industry News 10:24:43AM Jun 19, 2012 Source:SMM

SHANGHAI, June 19 (Reuters) - London copper was steady on Tuesday, after ending slightly down in the previous session when an early euphoria over a victory for Greece's pro-bailout parties soon gave way to worries about Spain's shaky finances and wider problems in the global economy.

Base metals had risen broadly early on Monday after the Greek poll outcome, with copper climbing to its highest in almost three weeks.
               
Fundamentals
Three-month copper on the London Metal Exchange edged up 0.1 percent to $7,520 a tonne by 0105 GMT after slipping less than a dollar on Monday. Prices hit a high of $7,615 in the prior session, the highest since May 30.

The most-active October copper contract on the Shanghai Futures Exchange inched down 20 yuan to 54,940 yuan ($8,600) a tonne, after rising slightly on Monday.

A relief rally on financial markets after Sunday's Greek vote quickly fizzled out as it became clear that the New Democracy party of Antonis Samaras had failed to win a strong mandate to implement the big spending cuts and tax increases demanded by the European Union and the IMF under a bailout deal.

Spain called for the European Central Bank to fight financial market pressures on the euro zone, and Italy said more must be done to shore up the bloc after the Greek election result failed to ease the strain on both countries, whose borrowing costs have shot up. 

Yields on both Italian and Spanish bonds rose on Monday, with Spain's 10-year yield climbing above the 7 percent mark at which other highly indebted euro zone nations were forced to seek bailouts.

Euro zone paymaster Germany signalled on Monday it may be willing to grant Athens more time to meet its fiscal targets to avert a catastrophic euro exit.

World leaders pressured Europe at the Group of 20 Nations Summit on Monday to take ambitious new steps to resolve its debt crisis.     
      
Market News
Asian shares slipped on Tuesday while the euro held most of its losses from the previous session as the post-Greek election relief rally quickly ran out of steam. Investors are now focusing on rising Spanish and Italian bond yields signalling that European leaders still have much to do to contain the euro zone debt crisis. 
       
    DATA/EVENTS (GMT)
0900  Germany   ZEW economic sentiment  Jun      
1145  U.S.      ICSC chain stores       Weekly   
1230  U.S.      Building permits        May       
1230  U.S.      Housing starts          May     
1255  U.S.      Redbook retail sales    Weekly  
U.S. Federal Reserve starts two-day policy meeting
   
                                                              
  Base metals prices at 0105 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7520.00     10.00     +0.13     -1.05
  SHFE CU FUT OCT2    54940       -20     -0.04     -1.24
  LME Alum          1932.00      2.00     +0.10     -4.36
  SHFE AL FUT OCT2    15795       -50     -0.32     -0.28
  HG COPPER JUL2     339.60      0.05     +0.01     -1.16
  LME Zinc          1894.00     14.00     +0.74      2.66
  SHFE ZN FUT SEP2    14950       -55     -0.37      1.05
  LME Nickel       16720.00     70.00     +0.42    -10.64
  LME Lead          1905.00     10.00     +0.53     -6.39
  SHFE PB FUT         15000      -135     -0.89     -1.90
  LME Tin          19500.00      0.00     +0.00      1.56
  LME/Shanghai arb     771
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3570 Chinese yuan)