SG:London copper near 5 week low eyes third weekly loss in four
Reuters reported that London copper futures hovered near their lowest level in five weeks and are set to post their third weekly fall out of four on growing worries the US Federal Reserve would start curbing its liquidity boosting economic stimulus this month.
Fundamentals;
1. Three month copper on the London Metal Exchange was up 0.2% at USD 7,072.50 per tonne by 0108 GMT after hitting a session low of USD 7,055.50. The contract hit USD 7,025 its weakest since August 8.
2. The most traded December copper contract on the Shanghai Futures Exchange fell almost 1% to CNY 51,200 per tonne.
3. Consensus is building among analysts that the Federal Reserve's policy meeting next week could result in the central bank paring back its USD 85 billion monthly bond purchases. The Federal Open Market Committee is set to release a policy statement at the end of its two day meeting next Wednesday.
4. The number of Americans filing new claims for jobless benefits appeared to drop to a near 7-1/2 year low last week but the decline was driven by two states that had trouble processing filings, making it difficult to get a clear read on the health of the US labor market.
5. A slew of US data tonight including producer inflation and retail sales may shed more light on the Fed's next stimulus strategy.
6. Output at the euro zone's factories fell by much more than expected in July in a sign of the weak demand from European households and the shakiness of the bloc's economic recovery.
7. Lead faces potential price spikes and rising premiums as a small market surplus dwindles further next year due to pressure on US output, while demand is cranking up after the global crisis.
