(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.