News

Newletter – Slight rises in LME copper

Newletter - Slight rises in LME copper

On the markets we have enjoyed some slight rises in LME copper although the rising AUD/USD has kept a lid on the Australian dollar prices. The AUD/USD is now trading at just over 70 cents.

There is little in the way of fundamental supply-and-demand data expected in the copper market this week, though the market could draw direction from the outcome of the Federal Reserve board meeting on Wednesday. Investors are also hoping that a meeting later this week by the Bank of Japan will bring news of stimulus measures.

The meeting will follow “very soothing” comments by European Central Bank President Mario Draghi last week, according to Robin Bhar, head of metals research at Societe Generale. On Thursday, Mr. Draghi signaled the bank could consider new stimulus measures at its meeting in March.

On Monday, the global picture, nonetheless, remained mixed, as European markets shook off gains in Asia, U.S. markets opened lower and oil prices reversed earlier increases, weighing on shares of resource companies.

Amid worries about Chinese growth and low commodity prices, analysts said copper’s recent gain didn’t indicate investors were warming to the metal.

“Sentiment among speculative financial investors still remains very pessimistic,” Commerzbank said in a note. The bank added that the net-short position in copper expanded for the third consecutive week, according to CFTC data released Friday.

 



News Categories

Recent News