Financial markets this week are trying to find a base as Britain and Europe are trying to figure out “what’s next”? The dollar and stocks in general have dropped due to the uncertainty surrounding how a European Union without Britain will look.
The dollar is currently trading at 73.33 down from last week’s 74.57 level.
* * * DJ Copper Closes Up in Europe as Firmer Asian Stocks Offset Dollar Strength – By Ese Erheriene * * *
LONDON–Copper futures closed up in London Monday, as firmer Asian stocks offset dollar strength in the first trading session since the U.K. unexpectedly opted to end its decades-long relationship with the European Union last week.
The London Metal Exchange’s three-month copper contract was up 0.3% at $4,710 a metric ton at the PM kerb close, pulling back from the four-day low it hit in the previous session at $4,588 a ton.
Asian stocks rebounded as global market’s interpreted Britain’s vote to exit the European Union in a referendum Thursday, with the Shanghai Composite Index finishing up 1.5%.
“Market participants clearly expect the Chinese authorities to take monetary policy measures in the next few weeks in a bid to minimise the negative impacts of the ‘Brexit’ on Asia’s largest economy,” said analysts at Commerzbank AG in a note.
Gains were capped by a firmer dollar, which pressured prices by making the dollar-priced metal more expensive to buy for those holding other currencies. The WSJ Dollar Index was recently up 0.96% at 87.42.
Among the other base metals, aluminium closed down 1.3% at $1,596.50 a ton, zinc was down 1.1% at $1,995 a ton, nickel was down 0.4% at $8,980 a ton, lead was down 1.6 at $1,702 a ton and tin was down 2% at $16,815 a ton.