RTRS: US copper gains as dollar slips on wider trade gap
NEW YORK, April 13 (Reuters) - U.S. copper futures rose on
Tuesday as the dollar slipped on news of a widening U.S. trade
deficit, but the red metal's upside was limited as a slight
rise in exports raised questions about the strength of U.S.
manufacturing and whether copper's day-earlier jump to 21-month
highs waw premature.
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[MET/L]
* Copper for May delivery HGK0 was up 2.60 cent at
$3.5905 per lb on the NYMEX's COMEX division.
* Range ran from $3.5440 to $3.5975.
* On Monday, May copper surged to $3.68 a lb, its highest
since late July 2008.
* COMEX estimated copper futures volume at 28,905 lots by
10 a.m. EDT (1400 GMT).
* Copper traded slightly higher in early business when the
dollar slipped against he euro.
* The dollar fell against the euro and yen after the U.S.
trade deficit widened, prompting investors to question the
strength of the recovery in U.S. manufacturing based on the
export data. [USD/]
* Data showing a jump in imports of consumer goods and
other products widened the U.S. trade gap in February to $39.7
billion had a slow impact on foreign exchange trading. Exports
edged up only 0.2 percent. [ID:nN12139785].
* Indications that top copper consumer China had limited
access to credit also capped the red metal's upside.
* Meanwhile in China, the world's top metals consumer, the
pace of new bank lending slowed last month to 510.7 billion
yuan ($75 billion) from February's total of 700.1 billion, as
Beijing renewed efforts to slow the world's third-largest
economy. [ID:nTOE63B08N]
* COMEX copper stocks unchanged at 101,128 short tons as of
Monday.
* London Metal Exchange metal stocks <0#LME-STOCKS> fell by
450 tonnes to 510,625 tonnes on Tuesday.
* In London, LME copper CMCU3 moved up from earlier lows
to trade at $7,909 a tonne, higher than $7,905 per tonne at
Monday's kerb close.
* LME copper reached a 20-month peak on Monday at
$8,043.75.