Bloomberg News

Copper Heads for Second Weekly Gain on Stockpiles: LME Preview

October 14, 2011

Oct. 14 (Bloomberg) -- Copper climbed, set for a second weekly advance, after London Metal Exchange stockpiles fell to their lowest level in almost six months.

Market News:

-- Asian stocks fell for the first time in seven days and bond risk increased after Standard & Poor’s cut Spain’s credit rating. Copper and oil gained, helping to drive an index of commodities toward a second weekly advance. NSN LT1LAE0YHQ0X <GO>

-- Spain’s credit rating was cut for the third time in three years by Standard & Poor’s as slowing growth and rising defaults threaten banks and undermine efforts to contain Europe’s sovereign-debt crisis. NSN LT19PE6TTDS0 <GO>

-- UBS AG, Lloyds Banking Group Plc and Royal Bank of Scotland Group Plc had long-term issuer default grades cut by Fitch Ratings, which put more than a dozen other lenders on watch negative as part of a global review. NSN LT1E6Y6TTDS0 <GO>

-- Nations from China to Brazil are considering increasing the International Monetary Fund’s lending resources to help stem the European debt crisis, Group of 20 and IMF officials said. NSN LT1G4L6JTSE8 <GO>

-- China’s inflation exceeded 6 percent for a fourth month, limiting the government’s ability to ease monetary policy as a weakening global recovery threatens growth in the world’s second-largest economy. NSN LT1GR50YHQ0X <GO>

-- Retail sales in the U.S. increased in September at the fastest pace in six months, boosted by vehicle purchases, economists said before a report this week. NSN LT0U3Y0UQVI9 <GO>

Metals News:

-- India granted state-run companies greater powers to acquire coal, oil and other mineral assets overseas without consulting the government as it bids to compete with China for resources to power its economy. NSN LT0EK16JTSEN <GO>

-- UBS AG cut its 2012 forecasts for copper, nickel, zinc and platinum and raised its estimate for iron ore. NSN LT1LHH6S9728 <GO>

-- Gold’s biggest slump in three years means traders and analysts are now the most bullish in three months, speculating that Europe’s debt crisis, slowing growth and a bear market in equities will drive demand for bullion. NSN LT1IWQ0UQVI9 <GO>

-- Workers at BHP Billiton Ltd.’s coking coal mines in Australia plan to hold 24-hour stoppages at seven mines in Queensland state on Oct. 19, Stephen Smyth, a district president at the Construction, Forestry, Mining and Energy Union, said in a statement on the group’s website today. NSN LT1L6C6K50YB <GO>

--Editors: John Deane, Claudia Carpenter

To contact the reporter on this story: Maria Kolesnikova in London at

To contact the editor responsible for this story: Claudia Carpenter at

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