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By Leia Michele Toovey- Exclusive to Copper Investing...

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    By Leia Michele Toovey- Exclusive to Copper Investing News

    LinkedIn 0diggsdigg Share Copper rallied to a two year high on Tuesday, propelled by optimism over the global economic recovery. The two main factors contributing to the red metal?s ascent was the news that Japan unexpectedly lowered interest rates, combined with weakness in the Greenback. Benchmark copper for three-month delivery on the London Metal Exchange rallied to $8,229 a tonne, the highest since late July 2008. The metal closed at $8,175 a tonne.

    Markets across the board were stunned, in a good way, with the announcement on Tuesday that The Bank of Japan will pump more funds into the struggling economy and keep interest rates at virtually zero. This caused the Euro to jump relative the U.S. dollar; making copper more affordable for holders of non-U.S. currency.

    Meanwhile, the markets I will await key economic data from the U.S.. On Friday the world?s largest economy will announce their monthly jobs report. The data out of the US today reported that monthly non-manufacturing business activity index hit its lowest level since January. If the jobs report is disappointing, analysts believe the U.S. Federal Reserve will embark on more monetary easing, which would in turn erode the greenbacks value; and further contribute to copper?s ascent.

    Helping the red metal track some impressive gains is the fact that supplies have been shrinking for months. Stockpiles in LME warehouses have fallen more than 30 percent since the middle of February. Tuesday?s data showed LME stocks down 350 tonnes to 374,100 tonnes.

    In concert with this rally, investment powerhouse Goldman Sachs Group raised its copper price estimates because of swelling demand. The forecast implies a 35 percent gain from the metal?s current price. The bank had predicted on Sept. 17 that copper would trade at $8,050 a tonne in 12 months. Goldman today advised investors to buy the December 2011 contract as increasing demand leads to shortages of the metal. ?Supply-demand deficits look set to grow on emerging- market strength and improving demand from developed economies, which we expect to significantly outpace supply growth, drawing down inventories and creating market shortages,? analysts including London-based Jeffrey Currie said in the report. ?We don?t believe that the market is fully pricing these shortages and the potential for demand rationing that lies ahead in 2011.? Goldman now estimates that the metal will touch $11,000, per tonne.
 
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(20min delay)
Last
7.6¢
Change
0.001(1.33%)
Mkt cap ! $11.81M
Open High Low Value Volume
7.6¢ 7.6¢ 7.6¢ $684 9K

Buyers (Bids)

No. Vol. Price($)
2 81000 7.6¢
 

Sellers (Offers)

Price($) Vol. No.
8.0¢ 60000 1
View Market Depth
Last trade - 15.47pm 08/08/2025 (20 minute delay) ?
EQN (ASX) Chart
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