DJ BASE METALS: Comex Copper Seen 12 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 12 cents lower Wednesday, based on electronic activity ahead of
the pit session on the Comex division of the New York Mercantile Exchange.
In overnight activity, base metals swung back to the downtrend, giving back
recent gains as the dollar strengthened in the wake of the U.S. presidential
elections.
With the dollar stronger and global equity markets lower, the market's focus
returned to a deteriorating macroeconomic outlook for the global economy,
analysts said.
In other markets that have the potential to affect metals in the short term,
the euro is down to $1.2914 from $1.2980 late Tuesday afternoon. In screen
trading ahead of the pit open, the December S&P 500 futures are down 15.20
points to 988.00. December crude is down $1.55 to $68.98 in overnight activity.
U.S. economic reports on Wednesday include:
- October ADP National Employment Report at 8:15 a.m. EST (1315 GMT), with
the private payrolls forecast expected down 100,000;
- October ISM Non-Manufacturing Composite Index at 10 a.m. EST (1500 GMT),
expected at 47;
- U.S. Energy Department oil inventories at 10:35 a.m. EST (1535 GMT), with
crude oil stocks expected up 1.2 million.
In New York Tuesday, copper futures rallied above $2 a pound briefly as
participants bought back previously sold positions while the U.S. dollar
plummeted. December copper rose 11.8 cents, or 6.4%, to settle at $1.9580 per
pound. The contract hit an intraday high of $2.0140 during pit trading.
Inventories of copper stored in London Metal Exchange warehouses rose 5,825
metric tons Wednesday, leaving them at 247,475. The most recent Comex inventory
data, released late Tuesday afternoon, were unchanged at 9,891 short tons.
-By Matt Whittaker, Dow Jones Newswires; 201-938-5959;
matt.whittaker@dowjones.com
