METALS-London copper hits 3-wk high on hopes of EU stimulus

Tue Aug 26, 2014 12:49am GMT
 

SYDNEY Aug 26 (Reuters) - London copper climbed to a three-week high as the market reopened after a holiday weekend on Tuesday, with signs of weakening in Europe's economy fanning hopes for fresh stimulus.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange traded at $7,097 a tonne by 0027 GMT, having earlier reached its highest since Aug. 5 at $7,108.75 a tonne. Prices last week notched their biggest weekly gain in 11 months.

* The most-traded October copper contract on the Shanghai Futures Exchange traded at 50,730 yuan ($8,243) a tonne in overnight trade, having marked a 7-week top on Monday.

* The euro zone's flat-lining economy took another hit on Monday when data showed German business sentiment sagging for the fourth month running, while a row over the lack of growth led the French government to resign.

* Sales of new U.S. single-family homes fell for a second straight month in July, but a surge in the stock of properties on the market and slower price gains should help stimulate demand in the months ahead.

* Divided by mistrust and mutual recriminations, the Russian and Ukrainian leaders will hold rare talks on Tuesday that offer only a slim hope of progress towards ending five months of separatist war in Ukraine.

* Chile reduced its global outlook for copper prices to an average $3.05 per pound this year, down from its previous estimate of $3.15, as prospects for growth ease in top buyer China.   Continued...

Market Update

  • Africa
  • US
  • Europe
  • Asia
UK £ USD =1.5703
Euro USD =1.2471
Rand USD =0.0913