LONDON June 30 (Reuters) - Copper firmed in Europe on
Wednesday as buyers took advantage of the last session's decline
to enter the market at lower prices, though metals remained
under pressure from concerns over lacklustre U.S. data.
A disappointing U.S. consumer confidence number for June on
Tuesday sparked heavy selling of stocks and commodities,
knocking the Reuters-Jefferies CRB index .CRB to a two-week
low and pushing copper to its weakest in a week.
It managed to edge up 0.1 percent early on Wednesday,
however, reflecting a recovery across the base metals.
"I think that yesterday's sell-off was overdone," said
Citigroup analyst David Thurtell. "All these fears about a
slowdown are an over-reaction. The fact is that industrial
output and investment are gradually recovering."
PRICES
* Three-month copper MCU3 on the London Metal Exchange was
trading at $6,508 a tonne at 0708 GMT compared with $6,494 at
the close on Tuesday.
* Aluminium MAL3 was at $1,946 a tonne from $1,950.
DATA/EVENTS
* U.S. ADP June unemployment report, 1215 GMT.
* U.S. Institute for Supply Management-New York releases
June index of regional business activity, 1230 GMT.
* U.S. Institute of Supply Management Chicago releases
Chicago index of manufacturing activity, 1345 GMT.
* Euro zone June flash inflation, 0900 GMT.
* The heads of Germany's central bank and financial market
watchdog hold a meeting with the country's largest banks to
discuss stress test results.
* European Business Summit takes place in Brussels.
[ECI/US] [ECI/EURO] [ECI/GB]
[M/DIARY] [MTL/DIARY]
MARKET NEWS
* The dollar edged lower against the euro EUR= as the
single currency benefited from a view that the previous day's
selling was overdone, though traders say it remains vulnerable
to further losses. [FRX/]
* Focus in the financial markets is on a three-month tender
by the European Central Bank ahead of the expiry of a 12-month
operation on Thursday when euro zone banks must repay 442
billion euros ($539 billion) borrowed at low rates.
* Oil edged lower on Wednesday, heading for its first
quarterly drop since 2008 as risk aversion over Europe's debt
crisis offset the effect of rising demand in the United States
and China, the world's top two consumers. [O/R]
* Asian stocks slid and the euro struggled near a two-week
low as investors unwound risky positions before the quarter end
amid heightened concerns over banks' funding conditions in
Europe. [MKTS/GLOB]
* European stocks inched higher at the open on Wednesday,
although investors were cautious ahead of the banks repayment to
the ECB. [.EU]
FUNDAMENTALS
* Global miner Rio Tinto (RIO.AX) (RIO.L) signed a
memorandum of understanding with Kazakh state company Tau-Ken
Samruk on joint prospecting and mining in the Central Asian
state on Wednesday. [ID:nLDE65T0A2]
* An Afghanistan copper mine joint venture between
Metallurgical Corp of China (MCC) (1618.HK) and Jiangxi Copper
(0358.HK) is expected to start production of copper concentrates
in 2013, an MCC executive said on Wednesday. [ID:nTOE65T04Y]
* Kazakhstan-based metals group Kazakhmys PLC (KAZ.L)
expects copper prices to fall in the wake of an economic growth
slowdown in China, the world's biggest copper consumer, the
company's head said on Wednesday. [ID:nLDE65T06H]
* Australia's government is continuing negotiations with the
mining sector over a controversial mining tax and there is no
timeline to conclude talks, Treasurer Wayne Swan said on
Wednesday. [ID:nSYU010141]
TECHNICALS
* Copper support at $6,479, resistance at $6,529, 14-day RSI
at 44.3.
* Aluminium support at $1,928, resistance at $2,002, 14-day
RSI at 45.6.
* LME copper MCU3=LX will rebound to $6,564 per tonne, the
23.6 percent Fibonacci retracement level on the fall from $6,885
to $6,465, as a five waves cycle has been completed, Reuters
market analyst Wang Tao said. [ID:nSGE65T017]
* LME aluminium MAL3=LX futures may consolidate between
$1,940-$1,963 per tonne before plunging towards $1,910 - the
61.8 percent Fibonacci retracement level on the rise from $1,828
to $2,042. [ID:nSGE65T01V]
For related news and prices, click on the codes in brackets:
LME price overview RING= LME aluminium <0#MAL:>
LME copper <0#MCU:> Asia physicals COMEX copper futures <0#HG:> Europe physicals Scrap metal prices BASEU3 LME plastics RELATED NEWS AND OTHER TOPICS
Base/minor metals news [MET] All metals news [MTL]
Metals summary [GLANCE/MTL] Scrap metals news [SCRAP/EUR]
Index of summaries [GLANCE/] All commodities news [C]
Metals diary [MTL/DIARY] Weather news [WEA]
Foreign exchange rates FX=S
SPEED GUIDES
COMMODS METAL1 REUTERS
For Reuters Metals Production Database click on URL below
mpd.session.rservices.co
