Copper rises as dollar weakens; supply, data restrain gains * Dollar falls, euro rises after German government deal * No end in sight to LME aluminiums grind lower -Triland * Coming up: U.S. durable goods orders Copper rose on Wednesday helped by a weaker dollar against the euro, but an improving supply pipeline of metal and a batch of data from the United States later in the session subdued gains. Three-month copper on the London Metal Exchange was $7,089 a tonne by 1041 GMT from $7,065 at the close on Tuesday. It is on track for a 2.5-percent drop in November and has lost more than 10 percent for the year. The release of major U.S. economic data will be the main focus for todays trading session, Myrto Sokou, senior research analyst at Sucden, said. The dollar is also getting softer against the euro so thats supportive for the base metals market, specifically for aluminium and copper at the moment, so thats why youre seeing this upside momentum in early trading. The dollar hit a one-week low against a basket of currencies after data failed to sway markets one way or the other over when the U.S. Federal Reserve would scale back stimulus. The euro rose after a deal was struck to form a new German government and more talk emerged of European Central Bank help for struggling firms. A weaker U.S. currency makes it cheaper for foreign investors to buy dollar-priced commodities, and typically supports prices. U.S. data scheduled for release on Wednesday includes the October durable goods report, weekly jobless claims, the Chicago purchasing managers index (PMI) and Michigan sentiment survey for November. The reports will give an indication of the health of the U.S. economy, the worlds largest. Trading volumes in the base metals market were low with the approach of Thursdays Thanksgiving holiday in the United States. COPPER SURPLUS The global market for refined copper swung into a 21,000 tonne surplus in August, rising after three straight months of a shortfall mostly due to higher production, data from the International Copper Study Group showed. LME aluminium was $1,775.50 a tonne from $1,773 on Tuesday, close to Mondays 4-1/2 month lows of $1,768, burdened by a glut. Aluminiums grind to the bottom shows no signs of stopping, and concerns would certainly increase were the years lows at $1,757 to be broken on a closing basis, broker Triland said in a note. We hear that buyer activity is improving in terms of contracts being negotiated and booked for 2014, but they are not looking to fix prices yet.
Posted on: Wed, 27 Nov 2013 11:44:01 +0000
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