BS: Copper Falls as Drop in U.S. Equities Erodes Commodity Demand
Sept. 14 (Bloomberg) -- Copper fell for the third time in four sessions as U.S. stocks declined, eroding demand for commodities.
The Standard & Poor’s 500 Index dropped from a one-month high as a slump in German investor confidence and the possibility that China will take steps to curb real-estate investment reignited concern the economic recovery is slowing. Yesterday, copper rose 2.1 percent in New York, the biggest gain since Sept. 1, on improving economic data in China.
“We’re seeing a setback as the stock market hesitates a little here,” said Lannie Cohen, the president of Capitol Commodity Services Inc. in Indianapolis. “Copper is following the equity market right now.”
Copper futures for delivery in December fell 3.7 cents, or 1.1 percent, to $3.442 a pound at 9:58 a.m. on the Comex in New York. Before today, the price gained 14 percent since June 1.
Germany’s ZEW Center for European Economic Research said its index of investor and analyst confidence, which aims to predict developments six months ahead, dropped to minus 4.3 from 14 in August. The median forecast of 36 economists in a Bloomberg News survey was 10.
The figures “pointed to a deterioration in the currently strong conditions,” said David Thurtell, a Citigroup Inc. analyst in London. Germany is the third-biggest consumer of copper after China and the U.S.
The metal also retreated as European industrial production unexpectedly stagnated and inventories tracked by the London Metal Exchange gained for the first time in eight sessions.
On the LME, copper for delivery in three months dropped $59.75, or 0.8 percent, to $7,570 a metric ton ($3.43 a pound).
Lead also fell in London, while nickel, zinc and aluminum gained. Tin climbed as much as 0.6 percent on the LME to $22,425 a ton, the highest price since July 31, 2008.
--Editors: Daniel Enoch, Millie Munshi.
To contact the reporters on the story: Yi Tian in New York at Ytian8@bloomberg.net; Anna Stablum in London at astablum@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net.
