Oct. 31 (Bloomberg) -- Copper fell the most in more than a week on concern that European leaders will struggle to raise funds to contain the region’s debt crisis, dimming prospects for commodity demand.
U.S. and European equities declined, and the Standard & Poor’s GSCI index of 24 raw materials dropped for a second day. Last week’s 15 percent gain in copper was the biggest since at least 1988 after European authorities pledged to boost the region’s rescue fund to 1 trillion euros ($1.4 trillion). The G-20 leaders will discuss Europe’s sovereign-debt crisis when they meet Nov. 3-4 in Cannes, France.
“People don’t know if what we’ve got is enough to quell the situation,” Matthew Zeman, a strategist at Kingsview Financial in Chicago, said in a telephone interview. “The euphoria is not going to last. There are still roadblocks for copper with uncertainties in China and the U.S.”
Copper futures for December delivery dropped 2 percent to close at $3.632 a pound at 1:22 p.m. on the Comex in New York, the biggest loss for a most-active contract since Oct. 20. The decline pared commodity’s gain for October to 15 percent, the first advance in three months.
“The metal was driven too far, too fast,” Zeman said. “There will be heavy resistance at $3.93.”
On the London Metal Exchange, copper for delivery in three months fell 2.3 percent to $7,990 a metric ton ($3.62 a pound).
Aluminum, tin, lead and nickel also declined in London. Zinc rose.
--With assistance from Agnieszka Troszkiewicz in London. Editors: Steve Stroth, Patrick McKiernan
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