FXS: BASE METALS: Comex Copper Seen 7 Cents Higher At Pit Open
BASE METALS: Comex Copper Seen 7 Cents Higher At Pit Open
By Matt Whittaker
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--December copper futures are expected to open floor trading around 7 cents higher Tuesday, based on electronic activity ahead of the pit session on the Comex division of the New York Mercantile Exchange.
In overnight activity, base metals on the London Metal Exchange continued to rise Tuesday, helped by better sentiment in the wider financial markets, but the gains are likely just a corrective bounce and prices could resume their falls after a few days, analysts and traders said.
In other markets that have the potential to impact metals in the short term, the euro is up to $1.2546 from $1.2457 late Monday afternoon. In screen trading ahead of the pit open, the December S&P 500 futures are up 40.20 points to 874.90. December crude is up $1.59 to $64.81 in overnight activity.
U.S. economic reports on Tuesday include the October Conference Board Consumer Confidence Index at 10 a.m. EDT (1400 GMT), expected at 51.5.
The two-day FOMC meeting begins Tuesday, with an interest rate announcement expected around 2:15 p.m. EDT Wednesday.
In New York Monday, firmer U.S. equities sent copper futures sharply higher as participants bought back previously sold positions, but they remained cautious in a market that has fallen nearly 60% since July. December copper rose 11.85 cents, or 7%, to settle at $1.8050 per pound.
Inventories of copper stored in London Metal Exchange warehouses rose 2,175 metric tons Tuesday, leaving them at 215,550. The most recent Comex inventory data, released late Monday afternoon, were up 440 short tons at 9,892 short tons.
-By Matt Whittaker, Dow Jones Newswires; 201-938-5959; matt.whittaker@dowjones.com
