Bloomberg News

Copper Declines as Chinese Demand May Weaken: LME Preview

October 10, 2011

Oct. 10 (Bloomberg) -- Copper fell for the first time in four days in London on concern that a drop in home prices in China, the world’s largest consumer, may indicate weakening demand.

Market News:

-- The euro strengthened, Standard & Poor’s 500 Index futures rose, and Asian stocks and commodities climbed a fourth day after German and French leaders pledged to devise a plan to stem Europe’s debt crisis in three weeks and as the U.S. showed signs of sustaining its economic recovery. NSN LSU6BC07SXKX <GO>

-- Angela Merkel and Nicolas Sarkozy, racing to stamp out the euro debt crisis threatening to engulf the financial system, gave themselves three weeks to devise a plan to recapitalize banks, get Greece on the right track and fix Europe’s economic governance. NSN LSTZ9P0D9L35 <GO>

-- Belgium agreed to buy the local consumer-lending unit of Dexia SA, ending a 15-year cross-border experiment with France after the European debt crisis deepened. NSN LSU2TF6TTDST <GO>

-- The U.S. has likely dodged a recession for now, even though it’s too early to sound the all-clear for the economy. NSN LSTN3P6S972D <GO>

-- Speculators cut wagers on higher commodity prices to the lowest since July 2010 just as raw materials had the biggest three-day rally of the year. NSN LSU29N1A1I4H <GO>

-- Investors are increasing bearish trades around the world by the most in at least five years, convinced the lowest valuations since 2009 will prove no barrier to losses after $11 trillion was erased from equities. NSN LSU6DB6TTDS6 <GO>

Metals News:

-- Refined-tin shipments from Indonesia, the largest exporter, dropped for a third month in September after prices slumped, a trade ministry official said. NSN LSU3RT6JTSF2 <GO>

-- Freeport-McMoRan Copper & Gold Inc. is seeking to continue negotiations on a new contract with workers at its Grasberg mine in Indonesia as the labor union considers extending a strike for a second month. NSN LSQHQB6JIJUP <GO>

-- Hong Kong Exchanges & Clearing Ltd. and the Hong Kong Mercantile Exchange declined to comment on a Sky News report they are among 10 parties to have expressed interest in bidding for the London Metal Exchange. NSN LSU1US0YHQ0X <GO>

-- The price of bearish contracts on Alcoa Inc. jumped to the highest level since May 2009, as traders speculate this week’s earnings report won’t stem a plunge that has erased $9 billion of equity value. NSN LSTJ016JIJUO <GO>

--Editors: John Deane, Claudia Carpenter

To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net

To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net


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