Copper May Extend Drop as Equities Slide on U.S. Jobless Data

LONDON, July 3 -- Copper, little changed in Asian trading, may drop for a second day after U.S. employers cut more jobs than forecast in June, triggering a global equity slump and raising concern demand for industrial metals will slow.

    U.S. payrolls declined by 467,000 in June and the country's jobless rate climbed to 9.5 percent, the highest since August 1983. The MSCI Asia-Pacific Index of equities declined 0.8 percent as of 10:18 a.m. Singapore time, extending yesterday's 0.2 percent drop. Copper has tended to track moves in equity markets in recent months.

    "Sentiment soured on the unemployment data," He Qing, an analyst at Jinrui Futures Co., said in an e-mailed report today. "Copper will fall easily and find it difficult to rally in the near term."

    Three-month copper on the London Metal Exchange dropped as much as 1.1 percent to $4,980 a ton and last traded at $5,042. Copper for September delivery in New York dropped 0.3 percent to $2.2985 a pound.

    October-delivery copper on the Shanghai Futures Exchange fell as much as 1.5 percent to 39,550 yuan ($5,788) a ton, the lowest intraday level in a week. The contract last traded 0.3 percent lower at 40,050 yuan a ton.

    Among other LME-traded metals, aluminum gained 0.3 percent to $1,645, zinc was up 0.3 percent at $1,577 a ton and nickel fell 0.3 percent to $16,400 a ton. Lead added 0.3 percent to $1,705 a ton and tin was unchanged at $14,300 a ton as of 10:12 a.m. in Singapore.

    (Source: Bloomberg)