BLBG: Copper Falls After Below-Forecast U.S. Spending: LME Preview
Aug. 4 (Bloomberg) -- Copper declined for a second day in London after U.S. consumer spending, pending home sales and factory orders were all weaker than expected in June, adding to concern that the economic recovery lost momentum.
Market News:
-- Junk bonds are closing in on par for the second time this year as fixed-income investors bet recent signs of economic weakness won’t be enough to derail corporate profits and the ability of the neediest borrowers to repay debt. {NSN L6LXIW0UQVI9 }
-- The yen rose to an eight-month high against the dollar and Japanese government bonds rose, pushing 10-year yields to a seven-year low, on concern the U.S. recovery has is losing momentum. Exporters led a decline in Asian stocks. {NSN L6M63Z0D9L35 }
-- The Swiss central bank may have saved its economy by embracing Chinese-style currency policy. {NSN L6L4Q01A1I4H }
-- Societe Generale SA, France’s second-largest bank, said second-quarter profit climbed more than threefold, helped by higher earnings at its French retail business and gains from re- evaluating debt. {NSN L6M34E07SXKX }
-- Asian stocks fell for the first time in three days as weaker- than-estimated U.S. home sales, factory orders and consumer spending prompted concern about the strength of the global economy. {NSN L6M6NX07SXKW }
-- Crude oil declined from a three-month high in New York after equities dropped amid concern the pace of fuel demand may weaken as the U.S. economic recovery falters. {NSN L6M33Z1A74E9 }
Metals News:
-- Nomura Holdings Inc. plans to boost commodity trading in Asia, betting China will lead a global revival in demand for iron ore, coal and metals. {NSN L6LO2B0YHQ0X }
-- Eurasian Natural Resources Corp., a Kazakh metals producer, said second-quarter production volumes were “significantly ahead” of those a year earlier. {NSN L6M6A26SETC1 }
-- OAO GMK Norilsk Nickel may back billionaire Vladimir Potanin in buying out rival shareholder Oleg Deripaska’s United Co. Rusal, Vedomosti said, citing two unidentifed people close to the nickel producer’s management and another close to an owner. {NSN L6M4836M62H6 }
-- Brazil’s Votorantim Metais plans to double zinc output from Peru to 700,000 metric tons by 2014 to meet rising demand, director Joao Bosco said. {NSN L6LERT0D9L36 }
-- Copper, which surged 12 percent in July, may extend its rally after breaking through a key Fibonacci retracement level, Barclays Capital said, citing technical indicators. {NSN L6LF1O0UQVI8 }
Metal Prices:
--Editors: Stuart Wallace, Claudia Carpenter
To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net.
To contact the editor responsible for this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net
