Amid dismal economic data out of Europe, copper made slight gains from an eight-month low as Chile’s port strike caused a supply squeeze.
Articles Tagged "eurozone"
Positive US and Chinese manufacturing data pushed copper to a short-lived, four-month high on Monday. Thereafter, copper prices slumped three days in a row as Spain became embroiled in a corruption scandal and the European Central Bank warned of risks to Europe’s economic recovery.
Reuters reported that copper prices edged higher on Tuesday, for a fourth day of gains, as the dollar fell. Still managing to keep a tight hold on copper prices are fears and uncertainty in the Eurozone's debt crisis.
Reuters reported copper prices were on the rise on Thursday as speculation on demand that China could recover by the end of the year. However, currency concerns from the Eurozone and a firmer US dollar kept a tight rein on the red metal's progress.
Reuters reported that copper prices were down to a one-week low on Monday investors play "wait-and-see" with the markets. Chinese infrastructure plans, ECB and US Federal Reserve policy easing have ebbed investor interest, furthermore, growing uncertainty over the fate of Spain has pushed the euro down.
Reuters reported that copper prices fell, backing away from 4 1/2 month highs on weak data from China's manufacturing sector and the Eurozone's service sector.
Copper traders are taking a wait-and-see approach ahead of Friday's speech from the Federal Reserve chairman. The red metal did, however, get some lift from China's continued commitment to buy European government bonds as a means to stabilize the Eurozone.
Reuters reported that copper prices rose for the first time in three days after Wen Jiabao, China's premier, expressed confidence in the Eurozone and said China is not opposed to purchasing more EU government bonds.
Forbes reported that BHP voiced concerns over the stability and future in the commodities market, blaming the Eurozone and China's slowdown for increasing its costs and lowering prices of its products.
The European Central Bank's decision to keep interest rates unchanged and not provide new stimulus measures has put a damper on copper demand, as has the Federal Reserve's decision not to pursue further quantitative easing, at least for now.