DJ BASE METALS: Copper 3.4257 China Comments and U
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Posted On: 08/31/2012 12:38:20 PM
DJ BASE METALS: Copper 3.4257 China Comments and U.S. Data Lift Copper Prices
Aug 30, 2012 By Tatyana Shumsky
--Comex December copper up 1% at $3.4825 a pound
--China Premier says China will continue to buy European debt
--U.S. consumer spending ticks up 0.4% in July
NEW YORK--Copper prices rallied Thursday on Chinese Premier Wen Jiabao's comments expressing confidence in the euro and data showing stronger U.S. consumer spending in July.
Copper for December delivery, the most active contract, was recently up 3.35 cents, or 1%, at $3.4825 a pound on the Comex division of the New York Mercantile Exchange.
China will continue to invest in European government bonds and maintains its confidence in the euro, Chinese Premier Wen said following a meeting with German Chancellor Angela Merkel in Beijing. China will also strengthen talks with the European Central Bank and others in an effort to help the euro zone weather its debt crisis, Mr. Wen said.
Copper traders took comfort in Mr. Wen's comments, sending copper prices higher. China is the world's largest consumer of copper, while Europe as a region is second in line, and concerns about economic growth have kept prices under pressure.
U.S. personal consumption expenditures ticked up 0.4% in July from the prior month, the Commerce Department said Thursday. This was the highest increase in five months and matched economist expectations. Consumer spending accounts for two-thirds of demand in the economy. Income rose 0.3% last month, for the eighth consecutive month of increases.
Copper is widely used in consumer electronics, electrical products and automotive production, and demand for such goods increases when consumer spending is on the rise.
The dollar retreated against the euro, giving copper prices an added boost. Copper futures are traded in dollars and become less expensive for investors who use other currencies when the dollar weakens.
The euro was recently trading at $1.2554, up 0.2% on the day.
Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
08-30-12 0949ET
Copyright (c) 2012 Dow Jones & Company, Inc.
Aug 30, 2012 By Tatyana Shumsky
--Comex December copper up 1% at $3.4825 a pound
--China Premier says China will continue to buy European debt
--U.S. consumer spending ticks up 0.4% in July
NEW YORK--Copper prices rallied Thursday on Chinese Premier Wen Jiabao's comments expressing confidence in the euro and data showing stronger U.S. consumer spending in July.
Copper for December delivery, the most active contract, was recently up 3.35 cents, or 1%, at $3.4825 a pound on the Comex division of the New York Mercantile Exchange.
China will continue to invest in European government bonds and maintains its confidence in the euro, Chinese Premier Wen said following a meeting with German Chancellor Angela Merkel in Beijing. China will also strengthen talks with the European Central Bank and others in an effort to help the euro zone weather its debt crisis, Mr. Wen said.
Copper traders took comfort in Mr. Wen's comments, sending copper prices higher. China is the world's largest consumer of copper, while Europe as a region is second in line, and concerns about economic growth have kept prices under pressure.
U.S. personal consumption expenditures ticked up 0.4% in July from the prior month, the Commerce Department said Thursday. This was the highest increase in five months and matched economist expectations. Consumer spending accounts for two-thirds of demand in the economy. Income rose 0.3% last month, for the eighth consecutive month of increases.
Copper is widely used in consumer electronics, electrical products and automotive production, and demand for such goods increases when consumer spending is on the rise.
The dollar retreated against the euro, giving copper prices an added boost. Copper futures are traded in dollars and become less expensive for investors who use other currencies when the dollar weakens.
The euro was recently trading at $1.2554, up 0.2% on the day.
Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
08-30-12 0949ET
Copyright (c) 2012 Dow Jones & Company, Inc.
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