(05/12) METALS-Copper ends lower as US jobs data boosts dollar

December 05, 2009

Copper ended lower on Friday, and extended a reversal from earlier 15-month highs in after-hours business, as a much-better-than-forecast U.S jobs report strengthened the dollar at the expense of metals.

Copper for March delivery on the New York Mercantile Exchange's COMEX division shed 0.75 cent to settle at $3.2375 a lb, after dealing between $3.1985 and $3.2750, which marked the highest level for the benchmark contract since late August 2008. In after-hours activity, the selling momentum picked up pace and pulled the contract back down below $3.20 a lb.
On the London Metal Exchange copper for three months delivery ended down $40 at $7,040 a tonne, after hitting a session peak at $7,170 earlier, a level not seen since Sept. 23, 2008.
U.S. employers cut a fewer than expected 11,000 jobs in November, the smallest decline since the start of the recession in December 2007, government data showed on Friday, reinforcing optimism for a more rapid economic recovery.
The reaction in copper was a little bit muted today. A lot of speculation has been going into the precious metals, whereas the industrial markets have been a little bit more stable, reflecting more a cautious optimism towards the economy," said Michael Gross, futures analyst with Optionsellers.com in Tampa, Florida. "The (jobs) report today seems to reflect that there is reason for that optimism."

Also boosting copper, the Commerce Department said U.S. factory orders rose 0.6 percent in October. The consensus was for orders to be unchanged.

(05/12) METALS-Copper falls as US jobs data boosts dollar

December 05, 2009

Copper prices fell on Friday after touching their best level since September last year, as a much better-than-forecast U.S payrolls number strengthened the dollar at the expense of metals.
Benchmark copper on the London Metal Exchange ended at $7,040 a tonne from $7,080 at the close on Thursday. Used in power and construction, copper hit $7,170 earlier, a level not seen since Sept 23, 2008.

U.S. employers cut a fewer than expected 11,000 jobs in November, the smallest decline since the start of the recession in December 2007, government data showed on Friday, reinforcing optimism for a more rapid economic recovery.
Also boosting copper, the Commerce Department said U.S. factory orders rose 0.6 percent in October. The consensus was for orders to be unchanged.
LME stocks for the metal, used in transport and packaging, rose 1,025 tonnes to remain near record highs above 4.5 million tonnes. Most of the stock is tied up in financing deals however, so it has a limited ability to weigh on prices.

Elsewhere, metals analysts downplayed the immediate impact on aluminium prices, after an attack on Guinea's junta leader. The West African country is the world's top export of the aluminium ore bauxite.

(05/12) ACCC freezes Telstra copper prices

December 05, 2009

ACCC to freeze copper access prices Telstra's rivals pay to access the network 'Consumers will pay more' THE competition watchdog has drawn the ire of Telstra's rivals, after it decided to put a freeze on the price of accessing the telco giant's.

(05/12) Gold falls on profit booking, Oil, copper slumps

December 05, 2009

Copper prices slumped more than 1% till 4.30 p.m. IST despite weakness in the dollar as markets awaited economic data on the unemployment front from the US. Risk aversion is on the rise and traders could get into profit-booking ahead of the year-end.

Investment funds have also reduced activity and a pullback may be well overdue. Copper also came under pressure as weekly Shanghai data showed the copper stocks gained 3433 tonnes of 3% in the week.
The US is expected to announce economic data on non-farm employment, unemployment rate, average hourly earnings and factory orders today. Unemployment rate is at a 26-year high and if the data comes in at 10.2%, then markets could react to this negatively.

Risk aversion could rise in financial markets today and lead to selling pressure in Gold, Copper and Crude oil. The rise in gold prices has been phenomenal and the yellow metal is due for a correction. Copper prices may find it difficult to sustain above $7000 levels on the LME.

(05/12) METALS-Copper may retreat ahead of U.S. payrolls

December 05, 2009

Shanghai copper was seen drifting
away from 15-month highs on Friday as investors focus on
increasing global inventories and weak U.S. service sector
data, while waiting for a crucial U.S. employment report.
* Three-month copper on the London Metal Exchange MCU3
ended down $45 at $7,080 a tonne on Thursday, after peaking at
$7,166, near the previous session's high of $7,170, its best
level since late September 2008. * In late trade copper pared losses to trade at $7,117. * When Shanghai closed on Thursday, LME stood at $7,125. * Stocks of copper on LME warehouses climbed 2,400 tonnes
to 445,400 tonnes, the highest level since April.
* U.S. stocks fell on Thursday after data showed the vast
U.S. services sector unexpectedly shrank in November and
investors worried that Friday's non-farm payrolls report may
show the recovery is sluggish.

(05/12) US copper hits 15-mth peak after strong jobs data

December 05, 2009

U.S. copper futures rose to fresh 15-month
highs Friday morning after a surprisingly strong U.S. payrolls report
reinforced optimism for a quicker economic recovery.
* Copper for March delivery HGH0 was up 0.85 cent at $3.2535 per lb
by 10:09 a.m. EST (1509 GMT) on the New York Mercantile Exchange's COMEX
division. * Ranging $3.2080 to $3.2750 which marked its highest since late August
2008.
* Copper up on stronger economic outlook. Market torn between rallying
dollar and economic recovery optimism - Frank Lesh, broker and futures
analyst with Future Path Trading in Chicago. * Copper gains buck typical bearish impact of a stronger dollar.
* Copper up despite across-the-board builds in global exchange
warehouses. * London Metal Exchange copper stockpiles added another 675 tonnes to
446,075 tonnes, their highest level since April.
* Shanghai inventories rose 3 percent to 104,710 tonnes from 101,277
tonnes a week ago, while copper stocks on warrant declined 1,036 tonnes to
33,552 tonnes.
* LME's three-month copper MCU3 last traded at $7,128 a tonne, up $48
from Thursday's kerb close and near its 15-month peak at $7,170.

(04/12) METALS-Copper falls ahead of US jobs data, stocks up

December 04, 2009

Copper eased on Friday, drifting away from near 15-month highs hit earlier in the week, as inventories rose and investors cautiously awaited key U.S. jobs numbers from the world's largest economy.

Copper for three-month delivery MCU3 on the London Metal Exchange fell to $7,065 a tonne in rings from $7,080 at the close on Thursday. Used in power and construction, copper hit an almost 15-month high at $7,170 on Wednesday.

U.S. non-farm payrolls were expected to have fallen by 130,000 in November, after a 190,000 decline in October, with the unemployment rate seen static at 10.2 percent month-on-month.

"It might come higher than expected," said Eugen Weinberg, an analyst at Commerzbank. "The market was getting really hot over the last week... it would be healthier for them to correct.