DJ MARKET TALK: Econ Worries, Inventories Hold Back Comex Copper
Comex copper is hovering around near-steady levels,
stabilizing after Tuesday's sell-off but not able to bounce. "The market is
still responding to the excess supply, which is being reflected in higher stock
levels on the exchanges," says Stephen Platt, analyst with Archer Financial
Services. LME warehouse stocks rose another 4,625 metric tons. Meanwhile, as
the market wonders how long any U.S. recession might last, there are worries
about China's economy since the government there is turning to fiscal stimulus,
he adds. "We are certainly oversold," he says. Yet, there is also potential to
still fall to the mid $1.50s. "There is no real sign that this market has
turned, but some modest support could come in," Platt says. Some corrective
rally could occur. "Then we'll have to see how the economy progresses as we
move into the first half of 2009." Dec copper is up 1.60 cents to $1.6640 a
pound. (ALS)
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