Metals - Copper down as stocks grow, equity nervousness stokes risk aversion |
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Published
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Wed, 29 Aug 2007 09:56
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LONDON (Thomson Financial) - Copper fell as the LME reported a large increase in stocks and as weakness in equity markets following poor economic data sparked another round of risk aversion.Poor US economic data yesterday confirmed the economy was not yet recovering and a global credit crunch could still weigh on financial market's health. Metals suffered as traders fled from riskier assets and sold off in an attempt to raise cash to cover losses.Meanwhile, on the fundamental side, supply looked healthy. A 3,025-tonne rise in global copper stocks tracked by the LME following yesterday's 10,075-tonne increase bought the total inventory number up to 138,650 tonnes, a three-month high.'We expect more choppy trade and further direction to be taken from the LME stocks,' said BaseMetals.Com analyst William Adams. He added bargain hunters would limit any price falls, 'although in the current circumstances and while we are still in the summer lull, the trade and shorts may not feel any need to chase the metals higher.'At 9.37 am, copper for three-month delivery was trading at 7,230 usd against 7,280 usd at the close yesterday.In other metals, nickel was down at 27,500 usd from 27,695 usd yesterday, aluminium was lower at 2,525 usd from 2,527 usd, lead fell to 3,115 usd from 3,180 usd, tin was down at 14,650 usd from 14,800 usd while zinc fell to 3,050 usd from 3,080 usd.anealla.safdar@thomson.comas/vlbCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Metals - Copper up as strong fundamentals inspire buying into dips UPDATE 