Bloomberg News

Copper Drops After S&P Warns on Europe Downgrades: LME Preview

December 06, 2011

Dec. 6 (Bloomberg) -- Copper dropped in London after Standard & Poor’s said it may lower credit ratings on 15 euro member nations, including Germany and France.

Market News:

-- Asia stocks dropped for the first time in seven days after Standard & Poor’s put 15 European nations on watch for potential ratings downgrades. Metals retreated and the euro fell against the dollar. NSN LVRMQ36JTSE9 <GO>

-- Standard & Poor’s said Germany and France may be stripped of their AAA credit ratings as the debt crisis prompts 15 euro nations to be put on review for possible downgrade. NSN LVRAC907SXKX <GO>

-- German Chancellor Angela Merkel and French President Nicolas Sarkozy strengthened their push for new rules to tighten euro area economic cooperation as Standard & Poor’s said it may downgrade credit ratings across the region. NSN LVRKMS1A74E9 <GO>

-- Australia’s central bank reduced its benchmark interest rate today for a second straight month as Europe’s fiscal crisis threatens to slow the nation’s commodity exports, sending the nation’s currency lower. NSN LVRMLY6TTDS1 <GO>

-- Nomura Holdings Inc. cut its estimate for China’s economic growth next year to 7.9 percent from 8.6 percent as investment in private housing slows and external demand weakens. NSN LVRNEB6TTDS3 <GO>

Metals News:

-- Shrinking copper stockpiles suggest China is weathering economic turbulence from the European debt crisis and anemic U.S. recovery, Macquarie Group Ltd. said. NSN LVQMZ11A74E9 <GO>

-- Aluminum buyers in Japan, Asia’s largest importer, secured a 5 percent cut in premiums charged by producers, the largest reduction in two years, as demand weakened, said three executives involved in the negotiations. NSN LVRLWW1A1I4H <GO>

-- Xstrata Plc announced ‘significant’ increases in copper resources. NSN LVRSXQ6KLVR4 <GO>

-- Afghanistan said it’s seeking investors for four mineral deposits containing copper and gold, a week after Indian steel and mining companies announced plans to spend as much as $11 billion in the war-ravaged country. NSN LVQQOM0D9L36 <GO>

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