EQN 1.660 1.675 1.660 +0.175 1.620 1.750 1.620 329,611 Didn't quite make it to $2 RED, perhaps next week? Yesterdays sell off on ASX was definitely a buying opportunity, but unfortunately RRS has cleaned out my cash reserves!
The following article may partially explain the rally on TSX yesterday & the delayed rally today on the ASX ~~~~~~~~~~~~~~~~ Copper struggles to its feet as sell-off pauses --------------------------------------------------------------------------------
Copper prices held steady in thin trade on Thursday as investors paused in their recent exodus from commodities prompted by concerns about slowing global economic growth and rising inflation, despite tight supply.
By 04:27 GMT, London Metal Exchange copper for delivery in three months was at $6,620 a tonne, down $10 from the previous day's London close. The metal had traded between $6 470 and $6 680.
"While it is too early to asses whether or not this correction has completely run its course, recent patterns suggest base metals prices may begin to stabilise, albeit amid volatile intraday trading," Peter Richardson, chief metals economist at Deutsche Bank, said in a daily note.
"It may take several more days to establish a clear sense of direction as market participants sift through relevant news items and releases of economic data."
On Wednesday, copper ended up $60 at $6,630 on bargain hunting, taking a pause in price declines since last week as investors had pulled out of commodities, including gold and oil, on a strong dollar amid concerns about higher interest rates.
Prices for copper, a barometer for industrial demand and used in construction and electronics, dipped to $6 410 on Wednesday, down as much as 27% from their May 11 peak of $8 800 but still up about 46 percent since the end of last year.
In electronic trade, copper for July delivery rose 4,15 cents to $3,0975 a lb after trading as low as $3,0235 on the New York Mercantile Exchange's COMEX division.
The market shrugged off a decline in China's copper imports as it had been expected after a rise in domestic output, but traders were concerned that Beijing may take further steps to cool down its booming economy.
China imported 38,8% less copper and exported 22,2% less aluminium in the first five months of 2006 than a year earlier, official customs figures showed.
China's central bank vowed on Thursday to step up its efforts to drain cash from the banking system, leaving less money for banks to lend for factories and property as strong data showed investment accelerating again.
Most Shanghai copper futures gained on bargain hunting after falling sharply in early trade, with the most active September contract up 1 450 yuan from the previous close to end the morning session at 59 050 yuan a ton.
Shen Haihua, vice president of Maike Futures in Shanghai,said Shanghai copper futures had fallen sharply in early trade as investors who could not sell the previous day after the contracts fell by their daily trading limits rushed to liquidate.
However, with support from stabilising equity markets, good bargain hunting at the low levels and a knee-jerk reaction after an early sell-off lifted copper futures sharply, Shen said.
He said fundamentals in the copper market also remained strong because of recent strong economic indicators from Japan and China, ongoing supply disruptions and an expected output cut by some Chinese smelters due to tight concentrate supply.
Shanghai's most active September aluminium contract rose 350 yuan a ton from the previous close to end the morning session at 20 060.
LME aluminium rose to $2 512 from the previous day's close of $2 500, while zinc was up $30 at $2 980 a ton.
Chinese zinc producers and merchants, anticipating the cancellation of a 5-percent tax rebate on zinc exports by Beijing from July 1, were increasing exports of the metal ahead of the deadline, industry officials said on Thursday.
EQN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)