Copper Down after Fed Pulls Punch, China PMI Awaited-Shanghai Metals Market

Hot Keywords

  • Zinc
  • Aluminium
  • Copper scrap
  • Market commentary
  • Primary lead
  • Copper
  • Customs data
  • Nickel
  • Futures movement
  • Inventory data
  • price forecast
  • MMi Iron Ore Port Index
  • Evening comments
  • Morning comments
  • Secondary lead

Copper Down after Fed Pulls Punch, China PMI Awaited

Industry News 10:13:17AM Jun 21, 2012 Source:SMM

SHANGHAI, June 21 (Reuters) - Copper slipped on Thursday after investors were disappointed that the Federal Reserve did not introduce more aggressive stimulus measures, while the market was awaiting the release of HSBC's reading on manufacturing in top metals consumer China.
               
Fundamentals
Three-month copper on the London Metal Exchange dropped 1 percent to $7,469 a tonne by 0139 GMT, its second session of losses after falling 0.8 percent on Wednesday.

The most-active October copper contract on the Shanghai Futures Exchange fell 0.9 percent to 54,400 yuan ($8,600) a tonne, after rising 0.4 percent the session before.

The U.S. Federal Reserve on Wednesday announced it was expanding its "Operation Twist", dashing the hopes of some who were betting a more aggressive quantitative easing programme.
 
The central bank will sell $267 billion worth of short-term securities to buy longer-term ones to keep long-term borrowing costs down. The program, which was due to expire this month, will now run through the end of the year.

But Wall Street's top bond firms still see a 50 percent chance that the Federal Reserve will begin a third round of quantitative easing to boost the U.S. economy even after it extended its current stimulus program on Wednesday.
 
A conservative-led government took power in Greece on Wednesday promising to negotiate softer terms on its harsh international bailout, help the people regain their dignity and steer the country through its biggest crisis for four decades.
 
With Spain's borrowing costs soaring recently, the country has been focused on helping its ailing banks, but it will soon have to put in more efforts into dealing with its highly indebted regions. 
  
Market News
Major stock indexes ended a choppy trading session flat to slightly lower on Wednesday while Treasuries trimmed losses after the Federal Reserve extended monetary stimulus to keep the U.S. economic recovery from stalling.

The dollar held off a one-month low against a basket of major currencies on Thursday, no worse for wear even after the Federal Reserve delivered another dash of monetary stimulus and said it was ready to do more if necessary.
       
    DATA/EVENTS (GMT)
0230  China     HSBC Mfg Flash PMI
0728  Germany   Markit Mfg Flash PMI   June      
0758  Euro zone Markit Mfg flash PMI   June      
1230  U.S.      Jobless claims         Weekly      
1258  U.S       Markit Mfg PMI         June
1400  U.S.      Existing home sales    May         
1400  U.S.  Philadelphia Fed business activity   June
   
                                                              
  Base metals prices at 0139 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7469.00    -76.00     -1.01     -1.72
  SHFE CU FUT OCT2    54400      -510     -0.93     -2.21
  LME Alum          1906.00      1.00     +0.05     -5.64
  SHFE AL FUT OCT2    15660       -90     -0.57     -1.14
  HG COPPER JUL2     337.05     -1.70     -0.50     -1.91
  LME Zinc          1865.00     -2.00     -0.11      1.08
  SHFE ZN FUT OCT2    14770      -170     -1.14     -0.17
  LME Nickel       16929.00   -271.00     -1.58     -9.52
  LME Lead          1879.00     -3.00     -0.16     -7.67
  SHFE PB FUT         14915      -145     -0.96     -2.45
  LME Tin          19200.00      0.00     +0.00      0.00
  LME/Shanghai arb     911
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
                                                              
 ($1 = 6.3599 Chinese yuan)
 

Key Words:  London copper Thursday 

Price

more
1# Silver ingots(99.99%)
May.27
3509.0
0.0
(0.00%)
2# Silver ingots(99.95%)
May.27
3494.0
0.0
(0.00%)
3# Silver ingots(99.90%)
May.27
3479.0
0.0
(0.00%)
Gold(99.99%)
May.27
288.4
-0.3
(-0.12%)
Gold(99.95%)
May.27
288.4
-0.1
(-0.03%)

Copper Down after Fed Pulls Punch, China PMI Awaited

Industry News 10:13:17AM Jun 21, 2012 Source:SMM

SHANGHAI, June 21 (Reuters) - Copper slipped on Thursday after investors were disappointed that the Federal Reserve did not introduce more aggressive stimulus measures, while the market was awaiting the release of HSBC's reading on manufacturing in top metals consumer China.
               
Fundamentals
Three-month copper on the London Metal Exchange dropped 1 percent to $7,469 a tonne by 0139 GMT, its second session of losses after falling 0.8 percent on Wednesday.

The most-active October copper contract on the Shanghai Futures Exchange fell 0.9 percent to 54,400 yuan ($8,600) a tonne, after rising 0.4 percent the session before.

The U.S. Federal Reserve on Wednesday announced it was expanding its "Operation Twist", dashing the hopes of some who were betting a more aggressive quantitative easing programme.
 
The central bank will sell $267 billion worth of short-term securities to buy longer-term ones to keep long-term borrowing costs down. The program, which was due to expire this month, will now run through the end of the year.

But Wall Street's top bond firms still see a 50 percent chance that the Federal Reserve will begin a third round of quantitative easing to boost the U.S. economy even after it extended its current stimulus program on Wednesday.
 
A conservative-led government took power in Greece on Wednesday promising to negotiate softer terms on its harsh international bailout, help the people regain their dignity and steer the country through its biggest crisis for four decades.
 
With Spain's borrowing costs soaring recently, the country has been focused on helping its ailing banks, but it will soon have to put in more efforts into dealing with its highly indebted regions. 
  
Market News
Major stock indexes ended a choppy trading session flat to slightly lower on Wednesday while Treasuries trimmed losses after the Federal Reserve extended monetary stimulus to keep the U.S. economic recovery from stalling.

The dollar held off a one-month low against a basket of major currencies on Thursday, no worse for wear even after the Federal Reserve delivered another dash of monetary stimulus and said it was ready to do more if necessary.
       
    DATA/EVENTS (GMT)
0230  China     HSBC Mfg Flash PMI
0728  Germany   Markit Mfg Flash PMI   June      
0758  Euro zone Markit Mfg flash PMI   June      
1230  U.S.      Jobless claims         Weekly      
1258  U.S       Markit Mfg PMI         June
1400  U.S.      Existing home sales    May         
1400  U.S.  Philadelphia Fed business activity   June
   
                                                              
  Base metals prices at 0139 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7469.00    -76.00     -1.01     -1.72
  SHFE CU FUT OCT2    54400      -510     -0.93     -2.21
  LME Alum          1906.00      1.00     +0.05     -5.64
  SHFE AL FUT OCT2    15660       -90     -0.57     -1.14
  HG COPPER JUL2     337.05     -1.70     -0.50     -1.91
  LME Zinc          1865.00     -2.00     -0.11      1.08
  SHFE ZN FUT OCT2    14770      -170     -1.14     -0.17
  LME Nickel       16929.00   -271.00     -1.58     -9.52
  LME Lead          1879.00     -3.00     -0.16     -7.67
  SHFE PB FUT         14915      -145     -0.96     -2.45
  LME Tin          19200.00      0.00     +0.00      0.00
  LME/Shanghai arb     911
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
                                                              
 ($1 = 6.3599 Chinese yuan)
 

Key Words:  London copper Thursday