* Copper climbs as high as 7.9 percent, eyes China rate cut
* Equity markets march upwards to provide boost
* Investors expecting rate cut from the U.S. Fed
(Updates official prices; adds U.S. data)
By Michael Taylor
LONDON, Oct 29 (Reuters) - A bounce in copper took other
base metals higher on Wednesday, buoyed by rising global equity
markets as investors eagerly awaited an expected interest rate
cut from the U.S. Federal Reserve later in the session.
Copper for three month delivery on the London Metal Exchange
rose to $4,425 a tonne in official trading rings, from $4,130 at
the close on Tuesday and compared with a session high of $4,455.
Prices of the metal used in power and construction have
however, fallen by more than 50 percent since a record high of
$8,940 in July.
"I'm not sure there is anything overly fundamental out there
in terms of improved demand," said Andrew Keen, an analyst at
Sanford C. Bernstein Research. "What you're seeing is a bit of a
bounce off the bottom."
"The metals complex and the equities are mostly trading on a
global macro trade. Any incremental reasons for a bit of a
relief rally are probably going to help both," he added.
European shares surged about 5 percent, while major rallies
in the U.S. and Asian equity markets provided a boost to
investors worried about the health of battered economies.
RATE CUTS TO STIMULATE GROWTH
Metal prices were underpinned by China's central bank, which
cut banks' benchmark lending and deposit rates by 0.27
percentage point, the third cut in six weeks.
"It was expected, so should be factored into the market,"
said Robin Bhar, a metals analyst at Calyon in London.
"There was clear evidence that growth in China was slowing
both in data and officials saying that ... we'll see more moves
to stimulate growth over the next six months or so -- everywhere
but specifically in China."
The United States is expected to cut interest rates by at
least half a point to 1 percent on Wednesday, a measure Japan,
the European Central Bank and Britain are forecast to follow by
the end of next week to bolster economies facing recession.
In other U.S. economic data, new orders for long-lasting
manufactured goods rose unexpectedly in September by 0.8
percent, led by surging demand for defense goods and
transportation equipment, the Commerce Department said.
Aluminium hit $2,180 a tonne, its highest in more than one
week, but was at $2,160 in official rings, from $2,105 on
Tuesday.
The metal used in transport and packaging has come under
pressure in recent months, as a slowing economic climate pulled
the price down from its all-time high of $3,380 in July 2008.
Nickel rose as much as 6.9 percent at $12,800 and was traded
at $12,675 in official rings versus $11,970.
Lead climbed 6.1 percent to $1,560 but was at $1,540 from
$1,470, while zinc rose 7.7 percent to $1,238 before tracking
back to $1,220 from $1,150. Tin was at $14,900 versus $14,750.
Offering further market direction ahead of the Fed rate
decision, U.S. crude stock data is due from 1535 GMT.
Metal Prices at 1306 GMT
Metal Last Change Pct Move End 2007 Ytd Pct
move
LME Cu 4400.00 270.00 +6.54 6670.00 -34.03
SHFE Cu* 31820.00 20.00 +0.06 56880.00 -44.06
LME Alum 2160.00 55.00 +2.61 2403.00 -10.11
SHFE Alu* 14195.00 20.00 +0.14 18180.00 -21.92
COMEX Cu** 199.60 15.45 +8.39 303.05 -34.14
LME Zinc 1205.00 55.00 +4.78 2370.00 -49.16
SHFE Zinc* 9225.00 15.00 +0.16 18950.00 -51.32
LME Nick 12675.00 705.00 +5.89 26350.00 -51.90
LME Lead 1525.00 55.00 +3.74 2550.00 -40.20
LME Tin 14900.00 150.00 +1.02 16400.00 -9.15
** 1st contract month for COMEX copper
* 3rd contact month for SHFE AL, CU and ZN
SHFE ZN began trading on 26/3/07
(Editing by Karen Foster)
- 
- 
- 
Welcome,
Guest!
News
