BS: Copper Falls on Chinese Inflation, Stronger Dollar: LME Preview
By Chanyaporn Chanjaroen
May 11 (Bloomberg) -- Copper fell in London as inflation in China, the biggest consumer of the metal, accelerated at the fastest pace in 18 months, increasing pressure on the government to tighten its monetary policy. A stronger dollar also curbed the appeal of commodities as an alternative investment.
Market News:
-- China’s inflation accelerated, bank lending exceeded estimates and property prices jumped by a record, increasing pressure on the government to raise interest rates and let the currency appreciate. {NSN L28PMP0D9L35 }
-- Money markets and the cost of protecting bank bonds from losses show investors are concerned the almost $1 trillion rescue plan announced by European leaders may not be enough to contain the region’s sovereign debt crisis. {NSN L28MTU1A74E9 }
-- The euro lost all of yesterday’s gains on concern the almost $1 trillion lending plan to bail out indebted nations in Europe will fail to avert a slowdown in the region. Asian stocks, copper, and U.S. index futures fell after China’s inflation rate hit an 18-month high. {NSN L28S9R0D9L35 }
-- European countries saddled with debt should focus on cutting deficits in the wake of policy makers’ unprecedented efforts to contain the region’s sovereign-debt crisis, the International Monetary Fund’s No. 2 official indicated. {NSN L28RKT0UQVI9 }
-- Crude oil fell to near $76 a barrel on concern that Europe’s almost $1 trillion bailout may not be sufficient to end the region’s sovereign debt crisis. {NSN L28SHJ1A1I4H }
Metals News:
-- Xstrata Plc placed all its projects in Australia under review following the government’s proposal to introduce a tax on mine profits. {NSN L28DBN6SETC3 }
-- Contract workers at Anglo American Plc and Xstrata Plc’s Collahuasi copper mine in Chile demanded the company pay bonuses to end a four-day blockade. {NSN L27ZP507SXKX }
-- BHP Billiton Ltd., the world’s biggest mining company, said its Yeelirrie uranium project in Western Australia is being reassessed following the government’s plan to impose a 40 percent tax on resource profits. {NSN L28LQ31A1I4H }
-- Crude steel output in China, the world’s biggest producer, rose 27 percent to a record in April, indicating that demand from makers of cars and appliances is continuing to rise. {NSN L28QRI1A1I4J }
--Editors: Stuart Wallace, John Deane
To contact the reporter on this story: Chanyaporn Chanjaroen in London at cchanjaroen@bloomberg.net
To contact the editor responsible for this story: Stuart Wallace at swallace6@bloomberg.net
