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In LME markets, Copper and Aluminium have suffered another week of declines (2.8% and 2.2% respectively in USD terms).  Ni has been a bright spot with a 3.8% rise, however there is always a lag in Ni volatility and the relative intrinsic values in the Ni bearing metals we trade.

AUD/USD dipped down to the 75 mark but has risen back to 75.96 (compared to 76.04 last week).  General economic news is also pretty depressing this week – the IMF is expected to cut its global growth forecasts, US consumer spending is off and NAB’s global head of policy research has said our Commonwealth debt is now “pushing against ratings agencies’ AAA boundary”.

 

** DJ Copper Falls In Europe — Market Talk**

1046 GMT Copper futures are lower on the London Metal Exchange, trading down 0.3% at $4,638.50/ton, as speculators take profit after recent gains.

Losses are being capped by a weaker dollar and better-than-expected economic data out of China. The WSJ Dollar Index is down 0.1% at 86.10, making the metal cheaper to buy for other currency-holders. Meanwhile producer prices in China fell less than expected by 4.3% in March.

Chinese inflation data also held steady instead of declining. Looking ahead, copper prices are still expected to rise by some analysts due to tightening market conditions. “We are currently in this period of prices coming down, and I expect this to continue in the short-term,” says Daniel Briesemann, a commodities analyst at Commerzbank. “But generally-speaking in the mid-to-long-term, I stick to my view that we will see higher prices.” (ese.erheriene@wsj.com)



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