DJ BASE METALS: Comex Copper 3.6495 Climbs on Weaker Dollar
Sep 11, 2012 By Tatyana Shumsky
--Comex December copper is up 0.4% at $3.7020 a pound
--Copper prices gain as dollar retreats
--Investors are looking ahead to the Fed's monetary decision Thursday
NEW YORK--Copper futures edged up to a four-month high Tuesday, supported by a weaker dollar and anticipation of monetary easing from the Federal Reserve later this week.
The most actively traded contract, for December delivery, was recently up 1.35 cents, or 0.4%, at $3.7020 a pound on the Comex division of the New York Mercantile Exchange. Copper touched a high of $3.7060, the highest price since May 10.
The dollar eased against the euro, with the European currency recently trading up 0.5% at $1.2823.
Copper futures are priced in dollars and become cheaper for investors who use other currencies when the dollar weakens, luring these investors to the market as buyers.
Copper's rally moderated Tuesday, losing some of the steam that helped prices add more than 17 cents a pound over the past two day. Copper roared up more than 3% on Friday, after a weaker-than-expected U.S. employment report fuelled expectations of more easy money from the Fed. The central bank's policy setting committee is due to deliver a decision Thursday, with broad market expectations leaning toward a new round of accommodative measures.
The rally got another leg up on Monday, when slower industrial data from China stoked hopes that the government there will institute a new stimulus program to boost the world's second-largest economy.
However, Deutsche Bank analysts warn that China's economic growth during the second half of 2012 may miss the bank's forecast of 7.6%.
Moreover, China's recently announced fast tracking of infrastructure spending by China's top economic planner, National Development and Reform Commission, are "not new stimulus", Deutsche Bank said in a note to clients. The projects include spending more than 700 billion yuan ($110 billion) on subways in 18 cities, and were widely seen as likely to lift demand for copper.
Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
09-11-12 0931ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures...27228.html
Sep 11, 2012 By Tatyana Shumsky
--Comex December copper is up 0.4% at $3.7020 a pound
--Copper prices gain as dollar retreats
--Investors are looking ahead to the Fed's monetary decision Thursday
NEW YORK--Copper futures edged up to a four-month high Tuesday, supported by a weaker dollar and anticipation of monetary easing from the Federal Reserve later this week.
The most actively traded contract, for December delivery, was recently up 1.35 cents, or 0.4%, at $3.7020 a pound on the Comex division of the New York Mercantile Exchange. Copper touched a high of $3.7060, the highest price since May 10.
The dollar eased against the euro, with the European currency recently trading up 0.5% at $1.2823.
Copper futures are priced in dollars and become cheaper for investors who use other currencies when the dollar weakens, luring these investors to the market as buyers.
Copper's rally moderated Tuesday, losing some of the steam that helped prices add more than 17 cents a pound over the past two day. Copper roared up more than 3% on Friday, after a weaker-than-expected U.S. employment report fuelled expectations of more easy money from the Fed. The central bank's policy setting committee is due to deliver a decision Thursday, with broad market expectations leaning toward a new round of accommodative measures.
The rally got another leg up on Monday, when slower industrial data from China stoked hopes that the government there will institute a new stimulus program to boost the world's second-largest economy.
However, Deutsche Bank analysts warn that China's economic growth during the second half of 2012 may miss the bank's forecast of 7.6%.
Moreover, China's recently announced fast tracking of infrastructure spending by China's top economic planner, National Development and Reform Commission, are "not new stimulus", Deutsche Bank said in a note to clients. The projects include spending more than 700 billion yuan ($110 billion) on subways in 18 cities, and were widely seen as likely to lift demand for copper.
Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com
(END) Dow Jones Newswires
09-11-12 0931ET
Copyright (c) 2012 Dow Jones & Company, Inc.
http://futures.tradingcharts.com/news/futures...27228.html
