Bloomberg News

Copper Heads to Fourth Weekly Drop on Europe Crisis: LME Preview

November 25, 2011

Nov. 25 (Bloomberg) -- Copper fell, heading for a fourth weekly decline, after Germany ruled out joint euro-area borrowing and an expanded role for the European Central Bank in fighting the region’s debt crisis.

Market News:

-- Asian stocks declined, dragging the region’s benchmark index to a fourth straight weekly loss, while the dollar gained and bond risk increased on concern European leaders are struggling to contain a sovereign-debt crisis. NSN LV7D360YHQ0X <GO>

-- Hungary lost its investment-grade rating at Moody’s Investors Service after 15 years as the Cabinet seeks International Monetary Fund help to boost confidence in the European Union’s most-indebted eastern member. NSN LV6T726TTDS0 <GO>

-- European Central Bank Executive Board member Jose Manuel Gonzalez-Paramo urged euro-area politicians to take bold steps toward fiscal union to end the debt crisis, and said they should not rely on the ECB. NSN LV6SKV6JIJUT <GO>

-- China’s sovereign wealth fund may give “indirect” support to Europe through investments without being the nation’s main route for any aid, said Jesse Wang, the executive vice president of China Investment Corp. NSN LV73006JIJUO <GO>

-- The dollar climbed against most major peers, extending this week’s gains, as investors sought the safest assets on concern economies in the euro area will worsen as leaders struggle to halt the region’s debt crisis. NSN LV7EXF6JIJUO <GO>

-- Oil headed for a second weekly loss in New York as speculation Europe’s debt crisis threatens its economy countered concern that violence in Saudi Arabia may destabilize the world’s biggest crude exporter. NSN LV7B7D6S972B <GO>

Metals News:

-- Copper supply shortages, which have been driven by operational problems and labor strikes in South America and Indonesia, are likely to persist next year, said OZ Minerals Ltd., Australia’s third-biggest producer by market value. NSN LV77TE0YHQ0X <GO>

-- OZ Minerals Ltd. expects long-term copper prices to be around $2.50 a pound. NSN LV70E26K50ZJ <GO>

-- Japan’s output of copper and copper-alloy fabricated products, including sheets and tubes, declined 11.5 percent in October from a year earlier. NSN LV6YKD0UQVI9 <GO>

-- The exploration joint venture between Aluminum Corporation of China Ltd.’s state-owned parent company and Rio Tinto Ltd. will officially begin operations in China. NSN LV7AJ96TTDSQ <GO>

-- China will soon release a plan to develop the nation’s nonferrous metals industry over the five years through 2015, Shanghai Securities News reports today. NSN LV6XAL6JIJUO <GO>

Other Markets:

Last % Change % YTD U.S. Dollar Index 79.227 0.2 0.3 Crude oil $96.33 0.1 5.4 Gold $1,686.23 -0.5 18.7 MSCI World Index 1,098.46 -0.1 -14.2

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