WSJ: BASE METALS: Lower Durable Goods Orders Dent Copper's Gains
--Comex December copper up 0.7% at $3.7345/lb
--China bolsters economy with liquidity injection
--U.S. durable goods orders plunge in August, force copper to pare gains
--Trader focus now turns to Spain, which is due to release its 2013 budget
By Tatyana Shumsky
NEW YORK--Copper futures pared earlier gains Thursday on weaker U.S. economic data, though China's efforts to inject liquidity into its financial system continue to provide some price support.
The most actively traded contract, for December delivery, was recently up 2.45 cents, or 0.7%, at $3.7345 a pound the Comex division of the New York Mercantile Exchange.
Copper prices pared some of their early-morning gains on data showing U.S. durable goods orders plunged by 13.2% in August to a seasonally adjusted $198.49 billion. Copper easily conducts electricity and does not rust in water, which makes it a popular material in constructing long-lasting products.
Earlier, copper futures had rallied after the People's Bank of China pumped $8 billion into the banking system Thursday, capping a record weekly net injection of 365 billion yuan ($57.9 billion) into the money market.
"The PBOC has added more net liquidity to money markets this week than any other week since at least 2008 and the market is expecting more stimulus measures out of the central bank given sliding profits for industrial companies in China," said brokers at RBC Capital Markets in a note to clients.
China is the world's largest consumer of copper, and moves to stoke its economic growth are broadly seen as a bullish sign for metal demand.
Trader attention now turns to Spain, which is due to unveil its 2013 budget plan later Thursday. Markets are anticipating the fourth-largest euro-zone economy to introduce fresh austerity reforms which will pave the way for securing a bailout.
Europe's protracted sovereign debt crisis has kept copper prices under pressure as investors worry that slower economic growth will damp demand for the industrial metal. Copper is widely used in construction and manufacturing.
Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
