Copper rises to 2-week high
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London Metals Exchanges base metals were higher on Friday as investors regained confidence on news of a bailout plan for sub-prime borrowers in the US, although analysts and traders warned of increased volatility ahead of the month’s close.
LME copper was up 1.5 per cent form Thursday’s close, at a two-week high of $7,510/tonne, while LME nickel was almost 3 per cent higher, at $29,100/tonne.
Gains lifted the rest of the complex, with LME zinc and lead both up 1.5 per cent at $3,089/tonne and $3,220/tonne, dragging LME aluminium some 1 per cent higher at $2,550/tonne. LME tin edged up 0.5 per cent to $15,500/tonne.
The announcement in the US that the Federal Housing Authority is to guarantee loans for delinquent borrowers has been a “shot in the arm” for investor sentiment, said JP Morgan analyst Mr. Michael Jansen.
US equity futures are pointing towards a solid opening after European equity markets climbed around 0.6 per cent higher following gains in Asia overnight.
While light consumer buying supported metals early in London, traders said a raft of economic data on Friday, plus speeches by President Bush and Fed Chairman Mr. Ben Bernanke could spur direction either way.
Also, markets should watch out for currency moves around 1500 GMT, noted UBS analyst Mr. John Reade, as “month-end rebalancing from asset managers may make the FX market volatile on a day when many US names are out of the office ahead of Monday’s holiday.”
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Source : Business Line |
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