FX:Copper little changed in choppy post-election trade; Greece vote eyed
Forexpros - Copper futures were little changed in choppy trade during European morning hours on Wednesday, after U.S. President Barack Obama was re-elected for a second term and as investors focused on a crucial Greek parliamentary vote later in the day.
Copper traders were also looking ahead to a looming leadership change in China.
On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.510 a pound during European morning trade, adding 0.1%.
Prices traded in a range between USD3.492 a pound, the daily low and a session high of USD3.543 a pound.
Copper prices spiked to the highest levels of the session after President Obama was declared as winner of the U.S. presidential election.
Obama won 303 electoral votes, more than the 270 needed to secure a second term in the White House, while Republican challenger Mitt Romney won 206 electoral votes.
The U.S. dollar came under heavy selling pressure following news of Obama’s victory, as it reinforced expectations that the Federal Reserve’s policy of quantitative easing will remain in place.
Markets now turned their attention to Greece, where country’s parliament prepared to vote on the latest rounds of austerity measures later in the day, which could determine if the debt-strapped country receives its next tranche of financial aid.
Investors are also eyeing the start of the Chinese Communist Party Congress on Thursday, where a once-in-a-decade leadership change is to take place.
Xi Jinping will probably replace Hu Jintao as general secretary of the party, with investors looking for clues on how the new leadership plans to address the nation's economic slowdown.
Copper traders also were looking ahead to Friday, when China releases a slew of economic data, including retail sales, industrial production and the country's consumer and producer price indexes.
The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.
Elsewhere on the Comex, gold for December delivery added 0.65% to trade at USD1,726.35 a troy ounce, while silver for December delivery rose 0.5% to trade at USD32.19 a troy ounce.
