FXS: BASE METALS: Comex Copper Seen 4 Cents Lower At Pit Open
BASE METALS: Comex Copper Seen 4 Cents Lower At Pit Open
By Matt Whittaker
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--December copper futures are expected to open floor trading around 4 cents lower Monday, based on electronic activity ahead of the pit session on the Comex division of the New York Mercantile Exchange.
In overnight activity, base metals traded on the London Metal Exchange continued to fall Monday as recession fears weighed on the broader markets pushing equities down and metals with them.
However, the broader markets are expecting to see a cut in U.S. interest rates this week, and that may provide temporary relief for the general markets and inspire a bounce in base metals prices, traders and analysts said.
In other markets that have the potential to affect metals in the short term, the euro is down to $1.2435 from $1.2622 late Friday afternoon. In screen trading ahead of the pit open, the December S&P 500 futures are down 23.50 points to 842.50. December crude is down $2.12 to $62.03 in overnight activity.
U.S. economic reports on Monday include September new home sales at 10 a.m. EDT (1400 GMT), with overall sales expected down 1.1% at 455,000.
In New York Friday, another day of weakness in equity markets meant another day of weakness in copper as traders continued to factor in a softening economy and ideas the copper market will be in a supply surplus next year. December copper fell 11.80 cents to settle at $1.6865 per pound.
Inventories of copper stored in London Metal Exchange warehouses rose 1,400 metric tons Monday, leaving them at 213,375. The most recent Comex inventory data, released late Friday afternoon, were up 874 short tons at 9,452 short tons.
-By Matt Whittaker, Dow Jones Newswires; 201-938-5959; matt.whittaker@dowjones.com
