Metals - Copper down on rising stocks; thin trade as mkt awaits US rate decision |
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Wed, 31 Oct 2007 10:25
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LONDON (Thomson Financial) - Copper fell amid thin trading ahead of a key US interest rate decision this evening and as stocks, tracked by the London Metal exchange, rose almost 4 pct.After the Fed's half-point reduction in September, most investors expect the US central bank to announce a quarter-point cut. Such a cut could boost the metals as it would devalue the dollar, and should in the longer term support industrial demand.A weaker dollar means commodities denominated in the greenback become cheaper for those trading in other currencies.'Consolidation after the highs on Monday and the lows of Tuesday seems to be the name of the game and with the FOMC rate decision out this evening, all the markets are likely to be choppy,' said BaseMetals.Com analyst William Adams.At 9.28 am, LME copper for three-month delivery was down at 7,710 from 7,760 at the close yesterday.A daily LME report saying stocks of the red metal rose some 6,225 tonnes to 166,975 tonnes or 3.8 pct since yesterday did little to boost sentiment.Elsewhere, zinc fell to 2,820 usd per tonne from 2,840 usd at the close yesterday. Rising stocks were again one of the main drivers after the LME said inventories rose 5,200 tonnes to 71,725 tonnes in its daily report.In other metals, nickel was lower at 31,400 from 31,500 usd per tonne yesterday, aluminium was down at 2,510 usd from 2,521 usd, tin was steady at 16,675 from 16,650 while lead dropped to 3,570 from 3,583 usd per tonne at yesterday's close.anealla.safdar@thomson.comas/ajbCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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Metals - Copper extends losses as firmer dollar, rising stocks dent sentiment 