SINGAPORE, Oct 29: London copper slipped half a percent back towards two-week lows today on signs that U.S. Economic momentum has begun to falter.
While tepid U.S. Economic data tempered the outlook for demand, it also bolstered expectations the Federal Reserve would stick with its massive economic stimulus – reining in losses in copper.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange had slipped 0.3 percent to $7,169.75 a tonne by 0106 GMT, from the previous session when it finished little changed.
* Copper prices dropped to the lowest since Oct. 11 on Friday at $7,113 and are expected to remain in the $7,000-7,420 band that has contained them since early August.
* The most-traded January copper contract on the Shanghai Futures Exchange fell 0.2 percent to 51,400 yuan ($8,400) a tonne.
* ShFE aluminium marked its highest in more than two months at 14,465 yuan a tone, tracking overnight gains in London. LME aluminium, LME zinc and LME lead all hit their highest in two months on Monday.
* U.S. Manufacturing output barely rose in September and contracts to buy previously owned homes recorded their largest drop in nearly 3-1/2 years, the latest signs the economy’s momentum ebbed as the third quarter ended.
* Fed officials are unlikely to make any shift to monetary policy in a two-day meeting that ends on Wednesday as they wait for more evidence of how badly Washington’s budget battle has hurt the U.S. Economy.
* U.S. Copper fabricator Southwire Co dropped its legal fight against physical copper funds planned by Wall Street banks, as political and regulatory scrutiny make it unlikely the exchange-traded funds will ever be launched, according to a court filing on Monday.
(AGENCIES)
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