Bloomberg News

Copper Falls to One-Week Low as Moody’s Cuts European Ratings

February 15, 2012

Feb. 14 (Bloomberg) -- Copper fell to the lowest price in more than a week on renewed concern that Europe’s debt crisis will slow global growth and crimp commodity demand.

Moody’s Investors Service yesterday cut the debt ratings of six European countries including Italy and Spain and said it may strip France and the U.K. of their top ratings. U.S. equities declined after a report showed slower-than-forecast growth in retail sales, damping economic optimism.

“There’s a lot of concern about a global slowdown,” Dennis Cajigas, a senior market strategist at Zaner Group in Chicago, said in a telephone interview. The ratings downgrade “wasn’t unexpected, but it’s taking a toll” on copper, he said.

Copper futures for May delivery fell 0.6 percent to settle at $3.823 a pound at 1:12 p.m. on the Comex in New York. Earlier, the metal touched $3.7935, the lowest since Feb. 3.

On the London Metal Exchange, copper for delivery in three months declined 0.1 percent to $8,415 a metric ton ($3.82 a pound).

Nickel, zinc, lead and tin also fell in London, while aluminum rose.

--Editors: Daniel Enoch, Thomas Galatola

To contact the reporters on this story: Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net; Joe Richter in New York at jrichter1@bloomberg.net

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


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