London Copper Dips on China, Japan Factory Activity-Shanghai Metals Market

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London Copper Dips on China, Japan Factory Activity

Industry News 09:55:29AM Jul 02, 2012 Source:SMM

SHANGHAI, July 2 (Reuters) - London copper fell back on Monday, surrendering part of its 4-percent gain in the previous session, after data at the weekend showed a factory slump in Asia's two biggest exporters, China and Japan, had deepened in June.

The decline in the two countries' purchasing managers' index (PMI) fanned concerns over demand for industrial metals and took some shine away from last week's policy breakthrough in the euro zone, where leaders greed to expand the use of rescue funds in ways that would ease market pressures on indebted countries. 
                               
Fundamentals
Three-month copper on the London Metal Exchange was down 0.8 percent at $7,630 per tonne by 0115 GMT, after surging 4.1 percent on Friday - its largest single-day rise since Nov 30.

The most-active October copper contract on the Shanghai Futures Exchange edged up 0.5 percent to 55,540 yuan ($8,700) per tonne, catching up with London's gains and after rising 1.9 percent in the prior session.

A factory slump in Asia's two biggest exporters China and Japan deepened in June as crumbling orders from abroad dragged activity to seven-month lows, heightening worries that the health of the global economy is deteriorating.
 
The data tempered market optimism over Europe's surprise deal last week. Under pressure to prevent a catastrophic breakup of their single currency, euro zone leaders had agreed on Friday to let their rescue fund inject aid directly into stricken banks from next year and intervene on bond markets to support troubled member states without them having to adopt extra austerity measures.

Investors are keeping an eye on the U.S. economy after consumer spending growth there ground to a halt in May as auto purchases flagged, while confidence ebbed to a six-month low in June, the latest signs of trouble for the economy.
 
Federal Reserve officials on Friday said they were keeping an eye out for any signs that slowing growth is raising deflation risks but differed on how worrisome sluggish job markets are for the modest U.S. economic recovery.
 
Market News
Asian shares rose on Monday with sentiment brightening at the start of the third quarter after Europe agreed to shore up the region's banks, while investor attention is turning to the health of the U.S. economy.

The rally in the euro and high-beta currencies took a breather on Monday as investors looked for fresh reasons to extend a risk rally sparked by initial euphoria over perceived progress in efforts to resolve Europe's debt crisis.
       
DATA/EVENTS (GMT)
0230  China   HSBC Mfg PMI Final       Jun 2012   CNPMIC=ECI 
0500  India   HSBC Markit Mfg PMI      Jun 2012    INPMI=ECI 
0743  Italy   Markit/ADACI Mfg PMI     Jun 2012   ITRPMI=ECI 
0753  Germany Markit/BME Mfg PMI       Jun 2012   DEPMIM=ECI 
0758  EZ      Markit Mfg PMI           Jun 2012    EUPMI=ECI 
1400  U.S.    ISM Manufacturing PMI    Jun         USPMI=ECI 
1400  U.S.    Construction spending mm May        USTCNS=ECI 
Russia  HSBC Mfg PMI             Jun 2012   RUPMIM=ECI
                                                                  
Base metals prices at 0115 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7630.00    -60.00     -0.78      0.39
  SHFE CU FUT OCT2    55540       300     +0.54     -0.16
  LME Alum          1897.00    -14.00     -0.73     -6.09
  SHFE AL FUT OCT2    15485        95     +0.62     -2.24
  HG COPPER SEP2     346.25     -3.40     -0.97      0.77
  LME Zinc          1854.00    -26.00     -1.38      0.49
  SHFE ZN FUT OCT2    14720       135     +0.93     -0.51
  LME Nickel       16620.00   -110.00     -0.66    -11.17
  LME Lead          1851.00    -10.00     -0.54     -9.04
  SHFE PB FUT         14835       160     +1.09     -2.98
  LME Tin          18800.00     25.00     +0.13     -2.08
  LME/Shanghai arb    1173
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3541 Chinese yuan)
   

 

Key Words:  London copper Monday  

Price

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Dec.09
4024.0
-90.0
(-2.19%)
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4009.0
-90.0
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Gold(99.99%)
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331.8
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Gold(99.95%)
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331.2
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(-1.21%)

London Copper Dips on China, Japan Factory Activity

Industry News 09:55:29AM Jul 02, 2012 Source:SMM

SHANGHAI, July 2 (Reuters) - London copper fell back on Monday, surrendering part of its 4-percent gain in the previous session, after data at the weekend showed a factory slump in Asia's two biggest exporters, China and Japan, had deepened in June.

The decline in the two countries' purchasing managers' index (PMI) fanned concerns over demand for industrial metals and took some shine away from last week's policy breakthrough in the euro zone, where leaders greed to expand the use of rescue funds in ways that would ease market pressures on indebted countries. 
                               
Fundamentals
Three-month copper on the London Metal Exchange was down 0.8 percent at $7,630 per tonne by 0115 GMT, after surging 4.1 percent on Friday - its largest single-day rise since Nov 30.

The most-active October copper contract on the Shanghai Futures Exchange edged up 0.5 percent to 55,540 yuan ($8,700) per tonne, catching up with London's gains and after rising 1.9 percent in the prior session.

A factory slump in Asia's two biggest exporters China and Japan deepened in June as crumbling orders from abroad dragged activity to seven-month lows, heightening worries that the health of the global economy is deteriorating.
 
The data tempered market optimism over Europe's surprise deal last week. Under pressure to prevent a catastrophic breakup of their single currency, euro zone leaders had agreed on Friday to let their rescue fund inject aid directly into stricken banks from next year and intervene on bond markets to support troubled member states without them having to adopt extra austerity measures.

Investors are keeping an eye on the U.S. economy after consumer spending growth there ground to a halt in May as auto purchases flagged, while confidence ebbed to a six-month low in June, the latest signs of trouble for the economy.
 
Federal Reserve officials on Friday said they were keeping an eye out for any signs that slowing growth is raising deflation risks but differed on how worrisome sluggish job markets are for the modest U.S. economic recovery.
 
Market News
Asian shares rose on Monday with sentiment brightening at the start of the third quarter after Europe agreed to shore up the region's banks, while investor attention is turning to the health of the U.S. economy.

The rally in the euro and high-beta currencies took a breather on Monday as investors looked for fresh reasons to extend a risk rally sparked by initial euphoria over perceived progress in efforts to resolve Europe's debt crisis.
       
DATA/EVENTS (GMT)
0230  China   HSBC Mfg PMI Final       Jun 2012   CNPMIC=ECI 
0500  India   HSBC Markit Mfg PMI      Jun 2012    INPMI=ECI 
0743  Italy   Markit/ADACI Mfg PMI     Jun 2012   ITRPMI=ECI 
0753  Germany Markit/BME Mfg PMI       Jun 2012   DEPMIM=ECI 
0758  EZ      Markit Mfg PMI           Jun 2012    EUPMI=ECI 
1400  U.S.    ISM Manufacturing PMI    Jun         USPMI=ECI 
1400  U.S.    Construction spending mm May        USTCNS=ECI 
Russia  HSBC Mfg PMI             Jun 2012   RUPMIM=ECI
                                                                  
Base metals prices at 0115 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7630.00    -60.00     -0.78      0.39
  SHFE CU FUT OCT2    55540       300     +0.54     -0.16
  LME Alum          1897.00    -14.00     -0.73     -6.09
  SHFE AL FUT OCT2    15485        95     +0.62     -2.24
  HG COPPER SEP2     346.25     -3.40     -0.97      0.77
  LME Zinc          1854.00    -26.00     -1.38      0.49
  SHFE ZN FUT OCT2    14720       135     +0.93     -0.51
  LME Nickel       16620.00   -110.00     -0.66    -11.17
  LME Lead          1851.00    -10.00     -0.54     -9.04
  SHFE PB FUT         14835       160     +1.09     -2.98
  LME Tin          18800.00     25.00     +0.13     -2.08
  LME/Shanghai arb    1173
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3541 Chinese yuan)
   

 

Key Words:  London copper Monday