Copper Up on Stimulus Hopes after Bleak Data-Shanghai Metals Market

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Copper Up on Stimulus Hopes after Bleak Data

Industry News 10:19:50AM Jul 03, 2012 Source:SMM

SHANGHAI, July 3 (Reuters) - London copper firmed on Tuesday, after previous session's losses, as hopes of monetary easing actions by major central banks to counter a global slowdown helped offset demand worries stoked by grim macroeconomic data.

A rise in China's services sector Purchasing Managers' Index, snapping two months of falls, also supported prices.
                                   
Fundamentals
Three-month copper on the London Metal Exchange rose 0.5 percent at $7,660 per tonne by 0130 GMT, after falling 0.8 percent on Monday.

The most-active October copper contract on the Shanghai Futures Exchange edged up 0.4 percent to 55,580 yuan ($8,800) per tonne, stretching gains into a fourth session.

U.S. manufacturing shrank in June for the first time in nearly three years, adding to signs of a slowdown in the recovery but raising hopes for more easing from the Federal Reserve.

The disappointing U.S. data comes after a slew of weak manufacturing data from Europe and Asia, suggesting the euro zone debt crisis was reverberating throughout the global economy.

The U.S. Federal Reserve is ready to ratchet back its super-easy monetary policy when the time comes so as to head off any uncontrolled price rises, said the San Francisco Federal Reserve Bank President John Williams.

Money markets expect the European Central Bank to cut interest rates this week as the euro zone economy struggles, with policy action at the European Union summit having provided only fleeting relief to volatile sovereign debt markets.
 
China's services sector expanded at its fastest pace in three months in June, an official survey showed, but left intact market expectations that Beijing will deliver more policy measures to support growth in the near future.

Brazil's manufacturing output in June shrank for the third straight month in the latest sign that a battery of government stimulus measures have yet to spur economic growth, a survey showed on Monday. 
   
Market News
Asian shares inched up on Tuesday as manufacturing data around the world highlighted the drag on growth from the protracted euro zone debt crisis, raising expectations for the Federal Reserve to take further steps to underpin the fragile economy.

Investors made short shrift of both the euro and U.S. dollar on Tuesday after a batch of dismal data from Europe to the United States raised expectations for more action from central banks in both regions.
       
DATA/EVENTS (GMT)
0430  Australia RBA cash rate            Jul 2012   AUCBIR=ECI 
1145  U.S.      ICSC chain stores yy     Weekly     USUBSY=ECI 
1200  Brazil    Industrial output yy     May 2012    BRIOY=ECI 
1400  U.S.      Factory orders           May        USFORD=ECI 
      U.S.      Vehicle sales            Jun          USVEH=ECI
   
                                                              
  Base metals prices at 0130 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7660.00     35.00     +0.46      0.79
  SHFE CU FUT OCT2    55580       210     +0.38     -0.09
  LME Alum          1909.00      0.00     +0.00     -5.50
  SHFE AL FUT OCT2    15415       -25     -0.16     -2.68
  HG COPPER SEP2     348.10      1.20     +0.35      1.31
  LME Zinc          1872.00      0.00     +0.00      1.46
  SHFE ZN FUT OCT2    14760        80     +0.54     -0.24
  LME Nickel       16755.00      5.00     +0.03    -10.45
  LME Lead          1879.75      0.75     +0.04     -7.63
  SHFE PB FUT         14845       110     +0.75     -2.91
  LME Tin          18899.00     -1.00     -0.01     -1.57
  LME/Shanghai arb    1311
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3488 Chinese yuan)

 

Price

more
#1 Refined Cu
Aug.16
46460.0
90.0
(0.19%)
Standard-Grade Copper
Aug.16
46445.0
95.0
(0.20%)
High-Grade Copper
Aug.16
46475.0
95.0
(0.20%)
Guixi copper
Aug.16
46480.0
95.0
(0.20%)
Low-quality copper
Aug.16
46415.0
75.0
(0.16%)

Copper Up on Stimulus Hopes after Bleak Data

Industry News 10:19:50AM Jul 03, 2012 Source:SMM

SHANGHAI, July 3 (Reuters) - London copper firmed on Tuesday, after previous session's losses, as hopes of monetary easing actions by major central banks to counter a global slowdown helped offset demand worries stoked by grim macroeconomic data.

A rise in China's services sector Purchasing Managers' Index, snapping two months of falls, also supported prices.
                                   
Fundamentals
Three-month copper on the London Metal Exchange rose 0.5 percent at $7,660 per tonne by 0130 GMT, after falling 0.8 percent on Monday.

The most-active October copper contract on the Shanghai Futures Exchange edged up 0.4 percent to 55,580 yuan ($8,800) per tonne, stretching gains into a fourth session.

U.S. manufacturing shrank in June for the first time in nearly three years, adding to signs of a slowdown in the recovery but raising hopes for more easing from the Federal Reserve.

The disappointing U.S. data comes after a slew of weak manufacturing data from Europe and Asia, suggesting the euro zone debt crisis was reverberating throughout the global economy.

The U.S. Federal Reserve is ready to ratchet back its super-easy monetary policy when the time comes so as to head off any uncontrolled price rises, said the San Francisco Federal Reserve Bank President John Williams.

Money markets expect the European Central Bank to cut interest rates this week as the euro zone economy struggles, with policy action at the European Union summit having provided only fleeting relief to volatile sovereign debt markets.
 
China's services sector expanded at its fastest pace in three months in June, an official survey showed, but left intact market expectations that Beijing will deliver more policy measures to support growth in the near future.

Brazil's manufacturing output in June shrank for the third straight month in the latest sign that a battery of government stimulus measures have yet to spur economic growth, a survey showed on Monday. 
   
Market News
Asian shares inched up on Tuesday as manufacturing data around the world highlighted the drag on growth from the protracted euro zone debt crisis, raising expectations for the Federal Reserve to take further steps to underpin the fragile economy.

Investors made short shrift of both the euro and U.S. dollar on Tuesday after a batch of dismal data from Europe to the United States raised expectations for more action from central banks in both regions.
       
DATA/EVENTS (GMT)
0430  Australia RBA cash rate            Jul 2012   AUCBIR=ECI 
1145  U.S.      ICSC chain stores yy     Weekly     USUBSY=ECI 
1200  Brazil    Industrial output yy     May 2012    BRIOY=ECI 
1400  U.S.      Factory orders           May        USFORD=ECI 
      U.S.      Vehicle sales            Jun          USVEH=ECI
   
                                                              
  Base metals prices at 0130 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7660.00     35.00     +0.46      0.79
  SHFE CU FUT OCT2    55580       210     +0.38     -0.09
  LME Alum          1909.00      0.00     +0.00     -5.50
  SHFE AL FUT OCT2    15415       -25     -0.16     -2.68
  HG COPPER SEP2     348.10      1.20     +0.35      1.31
  LME Zinc          1872.00      0.00     +0.00      1.46
  SHFE ZN FUT OCT2    14760        80     +0.54     -0.24
  LME Nickel       16755.00      5.00     +0.03    -10.45
  LME Lead          1879.75      0.75     +0.04     -7.63
  SHFE PB FUT         14845       110     +0.75     -2.91
  LME Tin          18899.00     -1.00     -0.01     -1.57
  LME/Shanghai arb    1311
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3488 Chinese yuan)