U.S. Copper Higher as Dubai Bailout Lifts Sentiment
Source: Reuters (12/14/09)
"U.S. copper futures pushed higher Monday morning after news of a financial bailout for debt-laden Dubai. . ."
Benchmark copper for March delivery traded up 1.35 cents at $3.1465 a lb by 10:20 a.m. EST (1520 GMT) on the New York Mercantile Exchange's COMEX division. Range ran from $3.1105 a lb. to $3.1640 a lb.
Copper buoyed by increased risk appetite in broader markets after news Abu Dhabi threw debt-laden Dubai a $10 billion lifeline in an effort to avert a bond default.
Dollar index down as Dubai news reduces safe-haven buying and lifts dollar-denominated metals by making them cheaper for non-U.S. investors.
Copper up in extension of Friday rally triggered by robust trade and industrial output data from China, the world's top copper consumer, and strong U.S. economic data.
Spot copper premiums up in China in early December after Chile's Codelco raised 2010 term premiums, but remained low in most of Asia as stockholders try to work off inventories before the year's end.
London Metal Exchange copper warehouse stocks rose by 1,075 tons to 467,150 tons on Monday to their highest level since mid-April. COMEX copper warehouse stocks jumped 1,303 short tons to 92,610 short tons as of Friday. Money managers increased their net long, or bullish, positions in COMEX copper futures to 14,116 lots in the week ended Dec. 8, from 12,913 lots the previous week.