Copper 3.4402 Rises Alongside Equities, Euro Aug

Copper 3.4402 Rises Alongside Equities, Euro
Aug 07, 2012 By Tatyana Shumsky

--Comex September copper up 1.4% at $3.4370/lb
--Copper climbs on weak dollar, stronger equities
--Traders look ahead to Chinese economic data due Thursday

NEW YORK--Copper futures shot higher as trading opened Tuesday, with prices climbing on positive cues from currency and equity markets.

The most-actively traded contract, for September delivery, was recently up 4.80 cents, or 1.4%, at $3.4370 a pound on the Comex division of the New York Mercantile Exchange.

A weaker dollar propelled copper prices higher. The dollar eased against the euro, luring investors who use other currencies to the market. Dollar-denominated copper futures become cheaper for traders using other currencies when the dollar eases.

A firmer tone in equity markets also bolstered copper's appeal. The Standard & Poor's 500 stock index was recently up 0.6% at 1401.83. Copper and stocks tend to move in tandem, as both assets are considered leading economic indicators.

Copper traders are also positioning themselves ahead of Thursday, when China releases a series of economic reports including its monthly inflation and industrial-production data. Copper is widely used in manufacturing, construction, electronics and automotive production, among other applications. China is the world's largest consumer of copper, accounting for around 40% of global demand.

"With various states and central banks looking like reaching for their chequebooks, worse than expected data may well be viewed by the market as meaning China will have to deploy further resources to help stabilise its economy," said Leon Westgate, commodity strategist with Standard Bank, in a note to clients.

Write to Tatyana Shumsky at tatyana.shumsky@dowjones.com.
(END) Dow Jones Newswires
08-07-12 1015ET
Copyright (c) 2012 Dow Jones & Company, Inc.

http://futures.tradingcharts.com/news/futures...53755.html