Bloomberg News

Copper May Advance as Hedge Funds Turn Bullish: LME Preview

January 23, 2012

Jan. 23 (Bloomberg) -- Copper may gain in London after speculators turned bullish on copper for the first time in four months amid signs of growth in the U.S., rising demand in China and more confidence in Europe.

Market News:

-- Oil fell for a fourth day, the euro weakened and U.S. equity futures slid after Greek bondholders said they’ve made their maximum offer in negotiations to prevent the country from defaulting. NSN LY8M416JIJUO <GO>

-- Bondholders negotiating a debt swap with Greece have made their “maximum” offer, leaving it to the European Union and International Monetary Fund to decide whether to accept the deal, said Charles Dallara, who’s representing private creditors in the talks. NSN LY80E61A74E9 <GO>

-- European officials will forge ahead today with crafting a long-term plan to tackle the region’s debt crisis, as banking and government negotiators continue trying to reach an agreement that will lighten Greece’s debt burden. NSN LY7VM10D9L35 <GO>

-- Betting against the euro may be the most profitable trade in the foreign-exchange market as policy efforts to stave off a European recession debase the currency. NSN LY8C4A6KLVR4 <GO>

-- The U.S. bond market is neutralizing budget deficits as an election-year campaign weapon. NSN LY85PI1A1I4I <GO>

-- China’s slowing non-bank financing growth will help the economy achieve a “soft landing” and reduces concerns about systemic risk, Moody’s Investors Service said in its Weekly Credit Outlook. NSN LY8OWU6TTDS2 <GO>

-- Italy is bracing for a wave of strikes from cab drivers, pharmacists and other service providers to protest Prime Minister Mario Monti’s plan to spur competition and growth that he will present to European Union allies today. NSN LY7TZQ6S9728 <GO>

Metals News:

-- Speculators raised bets on higher metal prices by the most since July, turning bullish on copper for the first time in four months on signs of growth in the U.S., increasing demand in China and more confidence in Europe. NSN LY8IOO0D9L35 <GO>

-- Discovery Metals Ltd., developing a Botswana copper mine, rose to a record in Sydney after 7.9 percent of its shares traded in a single transaction and the Australian Financial Review said it may be a target for OZ Minerals Ltd. NSN LY8MAA0YHQ0X <GO>

-- Japan’s copper wire and cable shipments increased 2.9 percent in December from a year earlier as demand from the auto and construction industries climbed, an industry group said. NSN LY8I320UQVI9 <GO>

-- Macquarie Group Ltd. cut its 2012 forecasts for copper, aluminum, zinc, lead and tin. NSN LY50U66JIJUO <GO>

-- BHP Billiton Ltd., the world’s largest mining company, received conditional approval for a A$14 billion ($14.7 billion) expansion of its iron ore export harbor in Western Australia to boost supply to steel mills. NSN LY8JZV6K50XT <GO>

-- Higher copper stockpiles in China reflects a “sharp” drop in usage by home appliance and cable manufacturers, Macquarie Group Ltd. said in a Jan. 23 report. NSN LY5P8V6JTSE8 <GO>

-- ThyssenKrupp AG, Germany’s largest steelmaker, said it is in talks with Outokumpu Oyj to merge its Inoxum stainless steel unit with the Finnish company’s operations. NSN LY8QMW6JTSEW <GO>

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