Bloomberg News

Copper Falls, Capping Weekly Decline on European Debt Crisis

November 27, 2011

Nov. 25 (Bloomberg) -- Copper fell, capping a fourth straight weekly drop, as rising European borrowing costs fueled concern that the region’s debt crisis is deepening.

Italy’s borrowing costs almost doubled at an auction today as the euro declined, increasing concern that the world’s fourth-largest borrower may struggle to finance its debt. The Standard & Poor’s index of 24 commodities fell as much as 0.9 percent on concern that global growth will slow.

“A lack of specific measures to contain the debt crisis has caused concern about weaker growth in the eurozone’s larger economies,” Gayle Berry and Kate Tang, analysts at Barclays Capital, wrote in a report today.

Copper futures for March delivery declined 0.3 percent to settle at $3.284 a pound by 12:11 p.m. on the Comex in New York. Prices have tumbled 11 percent in four weeks.

The metal “will basically be dependent on what happens with the euro-zone crisis and is being held hostage to events surrounding this,” Bill O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said by e-mail Nov. 23.

On the London Metal Exchange, copper for delivery in three months fell 0.2 percent to $7,253 a metric ton ($3.29 a pound) at 5:39 p.m.

Aluminum and nickel also retreated in London, while lead, zinc and tin gained.

--Editors: Millie Munshi, Steve Stroth

To contact the reporter on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net


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