FXS: BASE METALS: Comex Copper Seen 1 Cent Higher At Pit Open
BASE METALS: Comex Copper Seen 1 Cent Higher At Pit Open
DOW JONES NEWSWIRES
May copper futures are expected to open floor trading around 1 cent a pound higher Wednesday, based on electronic activity ahead of the pit session on the Comex division of the New York Mercantile Exchange.
A continuation of the recent decline in London Metal Exchange inventories fanned hopes of a recovery in Chinese demand, helping copper rally in overseas trading, London-based analysts said. LME copper fell 4,850 metric tons to 526,025 tons, and canceled warrants - which indicate metal purchased and due to leave warehouses - rose to 64,400 tons, equivalent to 12.24% of total inventories.
Profit-taking capped the rally, however.
In other markets that have the potential to impact metals in the short term, the euro is down to $1.2539 from $1.2572 late Tuesday afternoon. In screen trading ahead of the pit open, the March S&P 500 futures are up 12.10 points to 700.90. April crude oil is up $1.27 to $42.92 a barrel in overnight activity.
The ADP national private-sector employment report is scheduled for release at 8:15 a.m. EST (1315 GMT), with expectations for a decline of 630,000 jobs last month.
The Institute for Supply Management's non-manufacturing index is due out at 10 a.m. EST (1500 GMT). The February reading is expected to be 41, down from 42.9 in January.
Weekly energy-inventory data - which has the ability to impact crude oil, which in turn often leads metals - is scheduled for release at 10:30 a.m. EST (1530 GMT).
Also, the Federal Reserve's Beige Book report is set for release at 2 p.m. EST (1900 GMT).
In New York Tuesday, copper futures rose on optimism about Chinese demand for the metal plus the fourth straight decline in stocks of copper stored in warehouses affiliated with the London Metal Exchange. May copper gained 8.85 cents to settle at $1.6045 per pound.
The most recent Comex inventory data, released late Tuesday afternoon, were steady at 45,329 short tons.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765; allen.sykora@dowjones.com
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