Copper Steadies from One-Month Low on Euro-Shanghai Metals Market

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Copper Steadies from One-Month Low on Euro

Industry News 09:52:41AM Jul 26, 2012 Source:SMM

SINGAPORE, July 26 (Reuters) - London copper steadied on Thursday, recovering from a one-month low hit in the prior session, aided by a rebound in the euro after comments from a European monetary official suggested the region's bailout fund could get more firepower.
   
Fundamentals
Three-month copper on the London Metal Exchange traded at $7,453 a tonne by 0105 GMT, up 0.09 percent from the previous session when it hit its lowest in one month at $7,344.25 a tonne. Copper has dropped 15 percent from the year's peak hit in February to trade down around 2 percent for the year.

The most-traded November copper contract on the Shanghai Futures Exchange traded up 1.1 percent at 54,220 yuan ($8,500) a tonne. 
 
Some U.S. manufacturers shook off weak European demand in the latest quarter, with makers of products ranging from bulldozers to cars finding solid demand at home was enough to offset weakness abroad.

Sputtering growth in China, the world's largest auto market, is clouding the outlook for Asian car brands and will weigh on results due for release in coming weeks.

Brazil's Vale became on Wednesday the latest victim of China's economic slowdown after second-quarter profit tumbled because of slowing demand for iron ore that will spill over into the coming quarters. 
   
Market News   
The euro rose against the dollar for the first time in six days on Wednesday after a European Central Bank official said he could see grounds for giving the euro zone bailout fund a banking license that would increase its crisis fighting firepower.

Japan's Nikkei share average rebounded from a seven-week low on Thursday following a small gain in the Dow Jones index, although market players say worries about the global economy will likely keep the market under pressure.

The S&P 500 fell for a fourth day and the Nasdaq dropped on Wednesday after a rare earnings stumble from Apple, while strong results from Boeing and Caterpillar lifted the Dow.

DATA/EVENTS   
    * 1230 GMT - U.S. Durable Goods for June
    * 1230 GMT - U.S. Weekly Jobless Claims
    * 1400 GMT - U.S. Pending Home Sales for June
    * 1400 GMT - U.S. Treasury Secretary Geithner Testifies    
 
   PRICES   
  Base metals prices at 0105 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7453.00      7.00     +0.09     -1.93
  SHFE CU FUT NOV2    54220       590     +1.10     -2.06
  HG COPPER SEP2     338.20      0.75     +0.22     -1.57
  LME Alum          1875.00      5.00     +0.27     -7.18
  SHFE AL FUT NOV2    15335        90     +0.59     -3.22
  LME Zinc          1809.75      8.75     +0.49     -1.91
  SHFE ZN FUT NOV2    14480       100     +0.70     -2.13
  LME Nickel       15925.00     25.00     +0.16    -14.89
  LME Lead          1855.00      0.00     +0.00     -8.85
  SHFE PB FUT          0.00 -14705.00   -100.00   -100.00
  LME Tin          17349.00      4.00     +0.02     -9.64
  LME/Shanghai arb^    1253
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3885 Chinese yuan)
 

Copper Steadies from One-Month Low on Euro

Industry News 09:52:41AM Jul 26, 2012 Source:SMM

SINGAPORE, July 26 (Reuters) - London copper steadied on Thursday, recovering from a one-month low hit in the prior session, aided by a rebound in the euro after comments from a European monetary official suggested the region's bailout fund could get more firepower.
   
Fundamentals
Three-month copper on the London Metal Exchange traded at $7,453 a tonne by 0105 GMT, up 0.09 percent from the previous session when it hit its lowest in one month at $7,344.25 a tonne. Copper has dropped 15 percent from the year's peak hit in February to trade down around 2 percent for the year.

The most-traded November copper contract on the Shanghai Futures Exchange traded up 1.1 percent at 54,220 yuan ($8,500) a tonne. 
 
Some U.S. manufacturers shook off weak European demand in the latest quarter, with makers of products ranging from bulldozers to cars finding solid demand at home was enough to offset weakness abroad.

Sputtering growth in China, the world's largest auto market, is clouding the outlook for Asian car brands and will weigh on results due for release in coming weeks.

Brazil's Vale became on Wednesday the latest victim of China's economic slowdown after second-quarter profit tumbled because of slowing demand for iron ore that will spill over into the coming quarters. 
   
Market News   
The euro rose against the dollar for the first time in six days on Wednesday after a European Central Bank official said he could see grounds for giving the euro zone bailout fund a banking license that would increase its crisis fighting firepower.

Japan's Nikkei share average rebounded from a seven-week low on Thursday following a small gain in the Dow Jones index, although market players say worries about the global economy will likely keep the market under pressure.

The S&P 500 fell for a fourth day and the Nasdaq dropped on Wednesday after a rare earnings stumble from Apple, while strong results from Boeing and Caterpillar lifted the Dow.

DATA/EVENTS   
    * 1230 GMT - U.S. Durable Goods for June
    * 1230 GMT - U.S. Weekly Jobless Claims
    * 1400 GMT - U.S. Pending Home Sales for June
    * 1400 GMT - U.S. Treasury Secretary Geithner Testifies    
 
   PRICES   
  Base metals prices at 0105 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7453.00      7.00     +0.09     -1.93
  SHFE CU FUT NOV2    54220       590     +1.10     -2.06
  HG COPPER SEP2     338.20      0.75     +0.22     -1.57
  LME Alum          1875.00      5.00     +0.27     -7.18
  SHFE AL FUT NOV2    15335        90     +0.59     -3.22
  LME Zinc          1809.75      8.75     +0.49     -1.91
  SHFE ZN FUT NOV2    14480       100     +0.70     -2.13
  LME Nickel       15925.00     25.00     +0.16    -14.89
  LME Lead          1855.00      0.00     +0.00     -8.85
  SHFE PB FUT          0.00 -14705.00   -100.00   -100.00
  LME Tin          17349.00      4.00     +0.02     -9.64
  LME/Shanghai arb^    1253
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-month copper in yuan, including 17 pct VAT, minus SHFE third month
 ($1 = 6.3885 Chinese yuan)