SINGAPORE, July 10: London copper was steady on Wednesday but stuck near to three-year lows after the International Monetary Fund downgraded its global growth forecasts – underscoring the metal’s dim demand prospects, while a stronger dollar also weighed.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange edged up to $6,747.50 a tonne by 0119 GMT, from the previous session when it finished 1.5 percent lower.
* Copper prices fell to their lowest in three year sat 6602 a tonne on June 25 and are down nearly 15 percent for the year.
* The most-traded November copper contract on the Shanghai Futures Exchange fell by 1 percent to 48,500 yuan ($7,900) a tonne.
* The International Monetary Fund trimmed its global growth forecast on Tuesday for the fifth time since early last year due to a slowdown in emerging economies and the woes in recession-struck Europe.
* China’s resolve to revamp its economy for the long-term good will be tested this month when a slew of data show growth is grinding towards a 23-year low, with no recovery in sight.
* China’s imports of copper and crude likely extended gains in June from a month ago as falling prices spurred purchases, while easing port congestion in Brazil may have pushed soybean arrivals to a record high.
* Conflicts of interest over ownership of commodity warehouses can inflate prices of raw materials such as aluminium, a report by two Brussels think-tanks said on Tuesday.
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MARKETS NEWS
* The euro stabilised on Wednesday after tumbling to a three-month low against the dollar after ratings agency Standard & Poor’s cut Italy’s debt rating, while Asian shares edged up – helped by Wall Street’s gains on optimism for U.S. Company earnings.
* The dollar hovered at three-year highs against a basket of major currencies on Wednesday as investors took aim at the euro and sterling on growing expectations that central banks in the euro zone and Britain will have to keep policy loose for a long time. (AGENCIES)
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