LME Copper Inches Down on Doubts Over Euro Zone-Shanghai Metals Market

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LME Copper Inches Down on Doubts Over Euro Zone

Industry News 10:21:56AM Jul 04, 2012 Source:SMM

SHANGHAI, July 4 (Reuters) - London copper edged down on Wednesday on a stronger dollar and as investors began to wonder if recent measures announced by European leaders were enough to tackle the euro zone debt crisis.

Trading is expected to remain cautious ahead of a European Central Bank meeting on Thursday, which may now have to produce more than a sharp interest rate cut to ease market doubts over the ECB rescue fund's ability to lower borrowing costs for indebted members such as Spain. 
                                   
Fundamentals
Three-month copper on the London Metal Exchange had fallen 0.6 percent to $7,772 per tonne by 0138 GMT, after hitting a 7-week high on Monday and ending that session up 2.5 percent.

The most-active October copper contract on the Shanghai Futures Exchange edged up 0.2 percent to 56,190 yuan ($8,800) per tonne, stretching gains into a fifth session.

The ECB is expected to cut interest rates to a record low on Thursday but may need to do more to satisfy financial markets already starting to wonder about the solidity of last week's summit measures to tackle the debt crisis.

The International Monetary Fund on Tuesday urged the United States to quickly remove the uncertainty over the path of fiscal policy, which is set to tighten abruptly at the start of next year without congressional action. Managing Director Christine Lagarde also warned that the potential for a political showdown over the U.S. budget and debt ceiling could shake confidence worldwide. 

France's new Socialist government slashed the economic growth forecasts of the euro zone's second largest economy on Tuesday, paving the way for a slew of cuts that are bound to anger many voters after President Francois Hollande promised to avoid austerity. 
    
Market News
Asian shares rose on Wednesday as investors kept hopes high for more monetary policy stimulus to support the faltering global economy, but trading may be subdued with U.S. markets closed for the Independence Day holiday.

The U.S. dollar rose on Wednesday after a string of weak data out of the United States and Europe spurred expectations of more stimulus from both the ECB and Federal Reserve.
       
DATA/EVENTS (GMT)
0758  EZ  Markit Services PMI        Jun 2012   
0230  China HSBC Services PMI        June      
                                                      
  Base metals prices at 0138 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7772.00    -46.00     -0.59      2.26
  SHFE CU FUT OCT2    56190        90     +0.16      1.01
  LME Alum          1969.00    -14.00     -0.71     -2.52
  SHFE AL FUT OCT2    15625       125     +0.81     -1.36
  HG COPPER SEP2     353.30     -0.70     -0.20      2.82
  LME Zinc          1896.00    -10.00     -0.52      2.76
  SHFE ZN FUT OCT2    14870        20     +0.13      0.51
  LME Nickel       17160.00   -130.00     -0.75     -8.28
  LME Lead          1910.00    -29.00     -1.50     -6.14
  SHFE PB FUT         14980        10     +0.07     -2.03
  LME Tin          19100.00   -150.00     -0.78     -0.52
  LME/Shanghai arb    1537
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 
($1 = 6.3523 Chinese yuan)

 

 

Price

more
#1 Refined Cu
Jul.17
46890.0
0.0
(0.00%)
Standard-Grade Copper
Jul.17
46870.0
10.0
(0.02%)
High-Grade Copper
Jul.17
46920.0
0.0
(0.00%)
Guixi copper
Jul.17
46925.0
0.0
(0.00%)
Low-quality copper
Jul.17
46810.0
-15.0
(-0.03%)

LME Copper Inches Down on Doubts Over Euro Zone

Industry News 10:21:56AM Jul 04, 2012 Source:SMM

SHANGHAI, July 4 (Reuters) - London copper edged down on Wednesday on a stronger dollar and as investors began to wonder if recent measures announced by European leaders were enough to tackle the euro zone debt crisis.

Trading is expected to remain cautious ahead of a European Central Bank meeting on Thursday, which may now have to produce more than a sharp interest rate cut to ease market doubts over the ECB rescue fund's ability to lower borrowing costs for indebted members such as Spain. 
                                   
Fundamentals
Three-month copper on the London Metal Exchange had fallen 0.6 percent to $7,772 per tonne by 0138 GMT, after hitting a 7-week high on Monday and ending that session up 2.5 percent.

The most-active October copper contract on the Shanghai Futures Exchange edged up 0.2 percent to 56,190 yuan ($8,800) per tonne, stretching gains into a fifth session.

The ECB is expected to cut interest rates to a record low on Thursday but may need to do more to satisfy financial markets already starting to wonder about the solidity of last week's summit measures to tackle the debt crisis.

The International Monetary Fund on Tuesday urged the United States to quickly remove the uncertainty over the path of fiscal policy, which is set to tighten abruptly at the start of next year without congressional action. Managing Director Christine Lagarde also warned that the potential for a political showdown over the U.S. budget and debt ceiling could shake confidence worldwide. 

France's new Socialist government slashed the economic growth forecasts of the euro zone's second largest economy on Tuesday, paving the way for a slew of cuts that are bound to anger many voters after President Francois Hollande promised to avoid austerity. 
    
Market News
Asian shares rose on Wednesday as investors kept hopes high for more monetary policy stimulus to support the faltering global economy, but trading may be subdued with U.S. markets closed for the Independence Day holiday.

The U.S. dollar rose on Wednesday after a string of weak data out of the United States and Europe spurred expectations of more stimulus from both the ECB and Federal Reserve.
       
DATA/EVENTS (GMT)
0758  EZ  Markit Services PMI        Jun 2012   
0230  China HSBC Services PMI        June      
                                                      
  Base metals prices at 0138 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7772.00    -46.00     -0.59      2.26
  SHFE CU FUT OCT2    56190        90     +0.16      1.01
  LME Alum          1969.00    -14.00     -0.71     -2.52
  SHFE AL FUT OCT2    15625       125     +0.81     -1.36
  HG COPPER SEP2     353.30     -0.70     -0.20      2.82
  LME Zinc          1896.00    -10.00     -0.52      2.76
  SHFE ZN FUT OCT2    14870        20     +0.13      0.51
  LME Nickel       17160.00   -130.00     -0.75     -8.28
  LME Lead          1910.00    -29.00     -1.50     -6.14
  SHFE PB FUT         14980        10     +0.07     -2.03
  LME Tin          19100.00   -150.00     -0.78     -0.52
  LME/Shanghai arb    1537
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE third month
 
($1 = 6.3523 Chinese yuan)