RTRS: Weak dollar, Fed plan spark rebound in US copper
NEW YORK, Nov 25 (Reuters) - U.S. copper futures turned positive early Tuesday after a plan by the Federal Reserve to bolster consumer lending propped up the broader market, while the dollar extended its slide against the euro, brokers said.
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* Most-active copper for March delivery HGH9 was trading up 2.70 cents at $1.6985 a lb by 10:35 a.m. EST (1535 GMT) on the New York Mercantile Exchange's COMEX division.
* The early range from $1.6120 to $1.7075.
* COMEX estimated volume at 7,187 lots by 9 a.m.
* COMEX copper bounces from overnight lows in the broader metals complex after BHP Billiton abandoned its $66 billion hostile bid for rival Rio Tinto. [ID:nLP735505]
* Copper's positive turnaround in response to firm open on Wall Street and another down day for the U.S. dollar - brokers.
* The dollar fell for a third straight day against the euro and equities opened sharply higher on the back of in-line U.S. third quarter GDP data and Fed's multibillion dollar program to buy mortgage related debt. [ID:nN25493180] [ID:nN25483040]
* "The markets were relieved that the U.S. GDP data came in line with expectations and we're seeing stocks move higher, and euro/dollar higher. There were fears that it would be much worse. Together with the Fed measures to boost consumer credit, these should ease risk aversion, at least for now." - Ron Simpson, director, FX Research, Action Economics.
* Grim demand outlook for raw materials in a slowing world economy likely to cap any rally in copper prices - analysts.
* Commodities to face years of depressed pricing - Blackrock World Mining Fund. [ID:nSYD291396]
* Global copper prices to average about $1.60 a lb in 2009 due to spreading global financial crisis and concerns about demand from China, which consumes 25 percent of the world's copper - Chile's state copper commission, Cochilco.
* China's monthly refined copper imports rose 15 percent in October to an eight-month high, boosted by attractive profit margins. [ID:nHKG4104]
* London Metal Exchange warehouse stocks jumped 2,825 tonnes on Tuesday, bringing total inventory levels to 287,225 tonnes, their highest since Feb. 2004.
* COMEX copper stocks increased by 854 short tons to 14,656 short tons as of Monday.
* LME copper for three month delivery was last down $10 at $3,740 a tonne, near the upper end of its $3,560 to $3,770 session range. (Reporting by Chris Kelly; Editing by John Picinich)
