RTRS:METALS-Copper climbs near one-month high on Fed signals
* Fed chairman Bernanke stresses need to keep policy easy
* Dollar falls vs euro and basket of currencies
* Coming up: U.S. Federal budget at 1800 GMT
By Harpreet Bhal
LONDON, July 11 (Reuters) - Copper prices hit their highest level in nearly
a month on Thursday, after the U.S. Federal Reserve chairman signalled a
commitment to monetary stimulus for the foreseeable future, helping boost
appetite for risky assets.
Three-month copper on the London Metal Exchange rose to its highest
level since June 18 at $7,049.25 a tonne in intraday trade. It was at $7,009.50
a tonne at 0931 GMT, up nearly 3 percent from a last bid of $6,825 on Wednesday.
Fed Chairman Ben Bernanke said that the U.S. central bank reiterated the
need for monetary policy accommodation for the foreseeable future, given tame
inflation and a fragile labour market.
The comments put pressure on the U.S. dollar, which fell against a basket of
currencies, making commodities priced in the greenback cheaper for holders of
other currencies.
"The Fed's tapering (of quantitative easing) might be less imminent than we
previously thought and that is positive for all risky assets including base
metals," said Danske Bank analyst Christin Tuxen.
"But on the fundamental side we are still in an environment where we are
very sensitive to any negative news out of China and we think that the country
is going to shift down a gear growth wise."
Hopes for looser policy from Beijing also drove gains in the market, after
dismal trade figures for June sparked fresh concerns about the extent of the
slowdown in China and raised market speculation that the government could cut
banks' reserve rate requirement ratio.
China is the world's biggest copper consumer, accounting for as much as 40
percent of global refined demand.
"Our China economists suggest China is unlikely to achieve its trade growth
target of 8 percent, which could place downside risk to the GDP (gross domestic
product) growth this year and pressure the labour market," ANZ analysts said in
a note.
In industry news, China's top planning body is preparing to let foreign
exchanges open commodities warehouses in free-trade zones, sources with
government links said, which would grant the LME coveted access to the
industrial giant.
Metal Prices at 0936 GMT
Comex copper in cents/lb, LME prices in $/T and SHFE prices in yuan/T
Metal Last Change Pct Move End 2012 Ytd Pct
move
COMEX Cu 3.19 0.09 +2.92 365.25 -99.13
LME Alum 1844.00 24.00 +1.32 2073.00 -11.05
LME Cu 7010.50 280.50 +4.17 7931.00 -11.61
LME Lead 2105.00 33.00 +1.59 2330.00 -9.66
LME Nickel 13788.00 463.00 +3.47 17060.00 -19.18
LME Tin 19716.00 166.00 +0.85 23400.00 -15.74
LME Zinc 1918.25 20.25 +1.07 2080.00 -7.78
SHFE Alu 14415.00 165.00 +1.16 15435.00 -6.61
SHFE Cu* 51000.00 2170.00 +4.44 57690.00 -11.60
SHFE Zin 14765.00 260.00 +1.79 15625.00 -5.50
** Benchmark month for COMEX copper
* 3rd contract month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07
