SINGAPORE, July 11: London copper rallied more than 2 percent to its highest in a week on Thursday, after U.S. Federal Reserve Chairman Ben Bernanke said accommodative monetary policy would be needed for the foreseeable future.
* Three-month copper on the London Metal Exchange hit its highest since July 4 at $6,994 a tonne, before edging back to $6,940 by 0125 GMT, still up 1.7 percent and extending gains from the previous session.
* The most-traded November copper contract on the Shanghai Futures Exchange surged more than 4 percent to 50,790 yuan, the highest since June 19 before easing to 49,940 yuan a tonne, up 3.22 percent.
* About half of the Federal Reserve’s policymakers felt the U.S. Central bank’s bond-buying stimulus should be brought to a halt by year end when they met in June, but many wanted reassurance the U.S. Jobs recovery was on solid ground before any policy retreat.
* China warned on Wednesday of a ‘grim’ outlook for trade after a surprise fall in June exports, raising fresh concerns about the extent of the slowdown in the world’s second-largest economy and increasing the pressure on the government to act.
* China’s top planning body is preparing to let foreign exchanges open commodities warehouses in free-trade zones, sources with government links said, which would grant the London Metal Exchange coveted access to the industrial giant.
MARKETS NEWS
* The dollar extended falls on Thursday, rapidly retreating from a three-year peak, after Federal Reserve Chairman Ben Bernanke said highly accommodative monetary policy would be needed for the foreseeable future.
DATA/EVENTS (GMT)
0300 Bank of Japan interest rate decision 1230 U.S. Weekly jobless claims
1230 U.S. Import/export prices
1800 U.S. Federal budget
PRICES
* The dollar extended falls on Thursday, rapidly retreating from a three-year peak, after Federal Reserve Chairman Ben Bernanke said highly accommodative monetary policy would be needed for the foreseeable future.
(agencies)
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