RTRS: US copper futures down early on stimulus pessimism
U.S. copper futures tracked a weaker open on Wall Street Thursday morning, losing more than 2 percent of their value, as investors digested a deal on a $789 billion economic stimulus package.
For detailed report on global copper markets, click on [MET/L]
* Copper for March delivery HGH9 was trading down 2.50 cents, or 1.6 percent, at $1.5150 a lb by 10:28 a.m. EST (1528 GMT) on the New York Mercantile Exchange's COMEX division.
* Early range from $1.5045 to $1.5640.
* COMEX estimated futures volume at 4,211 lots by 9 a.m.
* U.S. Congressional negotiators reached a deal on $789 billion in emergency spending and tax cuts, handing a big victory to President Barack Obama in his effort to pull the economy out of a steep tailspin. [ID:nN11379390]
* A vote in the U.S. House of Representatives on the economic stimulus package in not likely before Friday, House leadership aides told Reuters on Thursday. [ID:nLC833233]
* Copper still directionless in reaction to a lack of detail in bank bailout plan unveiled by U.S. Treasury Secretary Timothy Geithner.
* Edward Meir, metals analyst with MF Global, said the lack of specifics about how the core part of the Obama administration's bank bailout package (the public-private partnership) is supposed to work continued to unnerve the markets.
* The number of U.S. workers filing new claims for unemployment benefits eased last week but by less than expected, showing the labor market in the grip of a deep recession.
* Last week, COMEX copper prices jumped nearly 11 percent amid optimism for a Chinese demand recovery.
* "Given the recent hype about a possible rebound in Chinese demand after a period of destocking, the latest Chinese import figures were a disappointment." - Meir.
* China's imports of unwrought copper and semi-finished copper products fell 18.8 percent from December to 232,701 tonnes in January.
* Analysts expected import levels similar to December's near two-year high. [ID:nSP198875]
* London Metal Exchange warehouses rose 225 tonnes on Thursday, bringing total inventory levels to 516,675 tonnes.
* COMEX copper stocks went up 46 short tons as 41,258 short tons as of Wednesday.
