BLBG:Copper Falls in London on Concern China Use Slowing; Lead Gains
Copper declined in London, erasing earlier gains, on speculation China’s government will take steps to slow inflation, curbing demand for metals.
China’s swap market is signaling interest-rate increases for the first time since 2011 after inflation accelerated to a 10-month high and the housing market defied government cooling efforts. Hedge funds are making the biggest bet against copper on record, U.S. government figures showed last week.
“The new government seems determined to constrain excessive rallies in real-estate and tackle the potential threat of inflation,” Michael Lewis, an analyst at Deutsche Bank AG in London, said in a report dated today. There are “falling expectatations for Chinese economic activity.”
Copper for delivery in three months fell 0.1 percent to $7,650 a metric ton by 8:23 a.m. on the London Metal Exchange. Prices had earlier today jumped 0.7 percent. Lead was up 0.3 percent at $2,195.75 a ton.
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net
