DJ BASE METALS: Comex Copper Seen 5 Cents Higher At Pit Open
By Matt Whittaker
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)-March copper futures are expected to open floor trading
around 5 cents higher Wednesday, based on electronic activity ahead of the pit
session on the Comex division of the New York Mercantile Exchange.
In overnight activity, China's biggest interest rate cut in nearly a decade
boosted base metals, lifting copper near to a two-week high. The first decline
in copper inventories in a month also helped sentiment, which has been
strengthened by the weaker dollar and steadier tone in equity markets this
week, traders said.
In other markets that have the potential to affect metals in the short term,
the euro is down to $1.2931 from $1.3063 late Tuesday afternoon. In screen
trading ahead of the pit open, the December S&P 500 futures are down 12 points
to 841.20. January crude is up 74 cents to $51.51 in overnight activity.
U.S. economic reports on Wednesday include:
- Nov. 22 jobless claims at 8:30 a.m. EST (1330 GMT), with weekly jobless
claims expected down 12,000 at 530,000;
- October durable goods orders at 8:30 a.m. EST (1330 GMT), with total orders
expected down 3%;
- October personal income at 8:30 a.m. EST (1330 GMT), with personal income
expected up 0.1% and personal spending expected down 1.2%;
- November Chicago PMI at 9:45 a.m. EST (1445 GMT), with the adjusted
purchasing managers index expected at 38;
- November final Reuters/University of Michigan Survey at 9:55 a.m. EST (1455
GMT), with the end month sentiment index expected at 57.9;
- October new home sales at 10 a.m. EST (1500 GMT), with overall sales
expected down 3% at 450,000;
- Nov. 21 U.S. Energy Department Oil Inventories at 10:35 a.m. EST (1535
GMT), with crude oil stocks expected up 900,000 barrels.
In New York Tuesday, copper futures closed mildly lower as technical pressure
remained to the downside, outweighing earlier gains on equities and the Fed
plan to support consumer credit and the market for mortgage-backed securities.
March copper lost 1.75 cents to settle at $1.6540.
Inventories of copper stored in London Metal Exchange warehouses fell 875
metric tons Wednesday, leaving them at 286,350. The most recent Comex inventory
data, released late Tuesday afternoon, were up 1,559 short tons at 16,215 short
tons.
-By Matt Whittaker, Dow Jones Newswires; 201-938-5959;
matt.whittaker@dowjones.com
