Search on
News Title
News Details
London copper inches up and eyes monthly gain on China prospects
541 times viewed.
Saturday, 01 Dec 2012

Reuters reported that London copper edged up bracing to finish the month higher on signs that a recovery in China's economic growth took root in November although worries over Europe and the United States kept gains constrained.

Three month copper on the London Metal Exchange rose 0.22% to USD 7,917 per tonne by 0321 GMT adding to gains from the previous session when it hit 5 week high.

Mr Jonathan Barratt CEO of Barratt's Bulletin said that "Everyone's expectations on the copper market are turning bullish quarter 1. You've got the US housing market starting to pick up, China starting to pick up and reforms next year."

Mr Barratt said that copper prices could yet stage a snap rally going into the end of the year, given low liquidity and supply constraints further out that make the metal one of the top commodities picks for 2013.

He said that "There's a couple of gazillion dollars on the sidelines waiting to park itself. What I worry about is that all of a sudden there will be a rush to the gates for big assets. I think now represents a good time to buy."

Copper hit its highest since October 23rd 2012. Prices are set to finish November up more than 1.5% bringing year to date gains to more than 4%.

The most traded March copper contract on the Shanghai Futures Exchange climbed by 0.66 percent to CNY 56,760 per tonne its highest since November 2nd 2012.

Asian shares edged up on Friday on expectations for a deal to be reached to avoid a US fiscal crisis but investors wary about taking big positions before the end of the year were likely to take profits on the rises and buy on dips.

The euro was little changed on Friday having been a key driver in metals' gains this week. A weaker dollar makes commodities priced in the greenback cheaper for holders of other currencies.

The euro came off a one month high against the dollar on Thursday after House of Representatives Speaker Mr John Boehner dented hopes for a budget deal that could prevent the US economy from slipping back into a possible recession next year.

Mr Boehner said that "Fiscal cliff talks with the White House had made no substantive progress and criticized President Mr Barack Obama and Democrats for not getting serious about spending cuts.

In other news that could support metals via currency markets, Germany's parliament will approve a fresh bailout for Greece on Friday in a vote seen as a test of Chancellor Ms Angela Merkel's authority.

There were bright spots in global manufacturing. Japan's industrial output unexpectedly rose in October in a sign the world's third-largest economy may have seen the worst of the effects of weak global trade and a diplomatic row with China.

China's factory activity in November probably expanded at its fastest pace in seven months reinforcing views that recovery in the world's second largest economy is entrenched going into the final quarter of the year.

China's official purchasing managers' index may have rebounded in November to 50.6 from October's 50.2 data is expected to show at the weekend.

Source – Reuters


This is alternative content.

More Metals News