Bloomberg News

Copper Falls as Greek Debt Crisis May Slow Demand: LME Preview

June 16, 2011

June 16 (Bloomberg) -- Copper fell in London as the Greek debt crisis fanned speculation of a slowdown in growth and demand for industrial metals.

Market News:

-- Asian stocks tumbled, with the region’s key benchmark index on course for its longest string of weekly losses in seven years, as rioting against planned austerity measures threatened Greece’s government and the global economic recovery. {NSN LMV4F90YHQ0X <GO>}

-- Greek Prime Minister George Papandreou will reshuffle his Cabinet and seek a confidence vote today, battling to control a shrinking majority and push through austerity measures demanded by international lenders. {NSN LMV8050D9L35 <GO>}

-- A China leading indicator points to a likely moderation in the growth of the world’s second-biggest economy after export demand weakened, the Conference Board said. {NSN LMV2J71A1I4H <GO>}

-- The European Union’s failure to contain the Greek debt crisis is sending fresh shockwaves through currencies, money markets, equities and derivatives. {NSN LMVAW91A74E9 <GO>}

-- The euro declined to three-week lows against the dollar and the yen as speculation the European debt crisis is worsening damped demand for the region’s assets. {NSN LMVBZT0UQVI9 <GO>}

-- China, the largest foreign owner of U.S. government debt, added to its holdings for the first time in six months in April as economic data weakened and the Federal Reserve signaled no extension of its $600 billion purchase plan. {NSN LMUKQ00UQVI9 <GO>}

-- China’s campaign to tame inflation is trimming public expectations for price gains even as most households complain that property and consumer costs are unacceptably high. {NSN LMVAL01A1I4H <GO>}

-- New Zealand’s consumer confidence rose this quarter and manufacturing expanded at the fastest pace in 11 months in May, showing the economy was recovering from the February Christchurch earthquake before more tremors this week. {NSN LMV4171A74E9 <GO>}

Metals News:

-- Lead output in China, the largest user, may contract further this month, following a drop in May, amid record inventories and as battery makers close plants in response to a crackdown on polluting industries. {NSN LMV6CE6JIJUO <GO>}

-- Contract workers at El Teniente, Chile’s fourth-largest copper mine, staged street marches through Santiago yesterday, pledging to extend a strike until they receive a government- brokered wage increase. {NSN LMUVX607SXKX <GO>}

-- Korea Resources Corp., a state-owned minerals explorer, said its Boleo copper project in Mexico will begin production in 2013. {NSN LMV40H1A74E9 <GO>}

Metals Prices:

--Editors: Claudia Carpenter, Stuart Wallace

To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@abloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.


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