BS: Copper Extends Drop in London on China Speculation
Nov. 17 (Bloomberg) -- Copper fell a second day in London on speculation that China, the world’s largest buyer of the metal, is intensifying efforts to combat inflation.
Market News:
-- Asian stocks dropped, extending the longest global slump since January while commodities and the won fell after Premier Wen Jiabao said China is drafting measures to contain inflation. The dollar retreated against the euro. {NSN LC0N1N1A1I4H }
-- European finance ministers started work on possible aid for Ireland’s debt-laden banks, stopping short of an immediate bailout package and risking a renewed convulsion on bond markets. {NSN LC0FYL0YHQ0X }
-- A Chinese consumer confidence index fell for the first time in six quarters on expectations that the price of goods and services will keep increasing. {NSN LC0J3H1A1I4H }
-- The cost of living in the U.S. probably rose for a fourth month in October, led by higher gasoline and food prices that aren’t filtering through to other goods and services, economists said before reports today. {NSN LBZYJS0YHQ0X }
-- Three Federal Reserve district bank presidents said they expect the central bank to buy the entire $600 billion of Treasuries in a program aimed at spurring growth and reducing unemployment. {NSN LC0DQY1A74E9 }
-- The euro traded near a seven-week low amid concern a failure to craft a rescue package for Ireland will allow the nation’s banking crisis to spread. {NSN LC0O7O1A74E9 }
Metals News:
-- Copper and zinc futures tumbled as much as 5 percent in Shanghai, the maximum allowed by the bourse, after metals in London slumped the most in more than six months yesterday on speculation China, the biggest consumer, will take steps to cool inflation, curbing demand. {NSN LC0JD56S972C }
-- China’s production of nickel pig iron will rise 6.2 percent to 155,000 metric tons next year, with Chinese stainless steel producers substituting about one-third of primary nickel with the cheaper alternative, CRU said. {NSN LC0CXP0YHQ0X }
-- Xstrata Plc, the world’s fourth largest nickel producer, said restarting its Sinclair nickel mine in Australia will keep its total capacity in the nation steady as output tails off at another mine. {NSN LC0HSM07SXKX }
-- Gold imports this year by India, the largest consumer, have already exceeded 2009 levels as consumers boost jewelry purchases, according to the World Gold Council. {NSN LC0M090D9L35 }
*T Metal Prices:
-- Copper fell $161, or 2 percent, to $7,989 a metric ton at 8:01 a.m. on the London Metal Exchange. Relative Strength Index 40. -- Aluminum rose 0.1 percent to $2,244 a ton. RSI 35. -- Zinc dropped 2.5 percent to $2,085 a ton. RSI 31. -- Lead retreated 2.5 percent to $2,200 a ton. RSI 33. -- Nickel gained 1.3 percent to $21,100 a ton. RSI 32. -- Tin was down 1.5 percent to $24,150 a ton. RSI 35.
Other markets: Last % Change % YTD U.S. Dollar Index 79.22 0.0 1.7 Crude oil $82.05 -0.4 3.4 Gold $1,336 -0.2 22 MSCI World Index 1,210.14 -0.2 3.6
Economic Events:
Forecast Prior Time
(London)
U.S. Consumer Price Index 0.3% 0.1% 13:30 U.S. Housing Starts 598K 610K 13:30 U.S. Building Permits 568K 547K 13:30
