By Glenys Sim
Nov. 17 (Bloomberg) -- Copper declined in Asia, leading industrial metals lower, as the dollar rose on concern leaders from the Group of 20 nations may not be able to revive economic growth, curbing demand for raw materials.
A worsening global outlook weighed on the metal as Japan's economy, the world's second largest, unexpectedly shrank in the third quarter, confirming it entered the first recession since 2001 as companies cut spending.
``We had a few days of relief, and now it's back to heading lower as more bad news about the global economy emerges,'' said Jia Zheng, an analyst at Southwest Futures Co. from Shanghai. ``A resumption in the dollar's rally isn't helping.''
Copper for delivery in three months on the London Metal Exchange fell as much as 3.3 percent, and traded 2.6 percent lower at $3,720 a metric ton at 3:08 p.m. in Singapore.
December-delivery copper on the Comex division of the New York Mercantile Exchange lost as much as 3.9 percent to $1.649 a pound, before trading at $1.6845.
Copper for January delivery on the Shanghai Futures Exchange dropped as much as 3.6 percent to 28,920 yuan ($4,234) a ton, and ended the day at 29,360 yuan.
The ICE futures exchange's U.S. Dollar Index, which tracks the greenback against six trading partners, rose for a first day in three today. Dollar denominated copper becomes more expensive for holders of other currencies when the U.S. dollar gains. The metal is down 44 percent this year and the index is up 14 percent.
Leaders from the Group of 20 nations on the weekend agreed to take a ``broader policy response'' by using interest-rate cuts and fiscal stimulus to shore up the weakening global economy.
Among other LME-traded metals, zinc slipped 1.4 percent to $1,183 a ton, and lead fell 1.1 percent to $1,330. Aluminum was little changed at $1,929 a ton, and nickel was unchanged at $11,000. Tin had not traded as of 3:09 p.m. in Singapore.
To contact the reporter for this story: Glenys Sim in Singapore at gsim4@bloomberg.net
Posts
No comments:
Post a Comment