Copper gains on firm equity markets

Print this page Posted on : 08-31-2007 by recycleinme.com

Firmer global equity markets provided a lift to base metals on the London Metal Exchange in Asia on Thursday, although most metals are still searching for nearby direction, traders said.

Three-month copper opened higher as shorts covered and then flirted with $7,400 a tonne throughout the day. By 0600 GMT, copper had eased to $7,388/tonne, up $18 from the London Wednesday afternoon kerb.

“Stock markets rallied late, which has added support to prices,” said an LME broker in Hong Kong.

The Dow’s late rally gave a bounce to base metals in overnight trading, helping them avert a test of lower levels that would have dented sentiment, traders said.

ALUMINIUM UP

Aluminium edged $5 higher in Asia to $2,527 / tonne, although volumes were thin, traders said.

Zinc was up $10 at $3,080, holding above support at $3,000/tonne and shrugging off Wednesday’s light increase in stocks.

Lead rose $40 to $3,150/tonne. Strong fundamentals are likely to continue to underpin the metal, with the physical market in China likely to continue to be tight, said a trader at an international firm in Shanghai.

Nickel increased $205 to $28,000/tonne, while tin was unchanged at $14,800/tonne.

Source : Business Line