LME markets for the beginning of the month have been off a little so far. Copper has fallen over USD230/t in just 5 days, however with our Australian dollar also losing ground, (currently trading just under 1.02) these are actually quite healthy signs for us. As the LME markets have come down in USD terms, traders in the physical market have more comfort that the prices are becoming more realistic and as a result, we hope that some confidence will come back into the market.
The lower Australian dollar will also be welcomed by Australian manufacturers and exporters which will hopefully also stimulate our local market.
**** DJ MARKET TALK: NY Copper Turns Negative As Europe Worries Weigh **** By Leslie Josephs @ dowjones.com
11:08 (Dow Jones) Copper futures in New York turn negative as concerns over how elections in France and Greece will affect efforts to stem the euro-zone debt crisis and the subsequently stronger USD weighed across commodities markets.
**** DJ MARKET TALK: Shanghai Copper Futures Fall On Global Concerns **** By Chuin Wei Yap @ dowjones.com
0721 GMT [Dow Jones] Shanghai copper futures fall 1.1%, weighed by investor worries over global growth conditions. U.S. labor data Friday indicated hiring slowed in April, for the third month in a row, knocking commodity and equity prices down. “Concerns about the debt crisis in the euro zone coupled with Friday’s disappointing U.S. job data led traders to cut exposure to risky assets,” Phillip Futures says in a note.