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Monthly Archives: November 2012

Copper Set for Second Weekly Advance on Signs of China Recovery

Copper Set for Second Weekly Advance on Signs of China Recovery

By Bloomberg News

Copper gained, poised for a second weekly advance, after signs that China’s economy is rebounding raised expectations that consumption in the world’s largest user will increase next year.

Metal for delivery in three months rose 0.2 percent to $7,728 a metric ton on the London Metal Exchange at 3:18 p.m. in Shanghai, after falling as much as 0.6 percent. It’s gained 1.6 percent this week, extending last week’s 0.5 percent climb.

“Copper will probably continue to be traded at $7,700 to $7,800,” said Wang Na, an analyst at Guolian Futures Co. While Europe has again become a concern, China seems to be improving and a tight global market is underpinning prices, Wang said.

China’s factory output may have expanded for the first time in 13 months in November, according to a preliminary survey from HSBC Holdings Plc and Markit Economics yesterday. Codelco, the largest producer, reported a 5 percent drop in nine-month output to 1.25 million tons as ore grades fell at its Chilean mines.

The February-delivery copper contract closed 0.2 percent higher at 56,140 yuan ($9,014) a ton on the Shanghai Futures Exchange. The March-delivery contract rose 0.2 percent to $3.514 a pound on the Comex in New York. Tin, nickel and zinc climbed in London, while aluminum and lead were little changed.

Nov 23, 2012

Metals Climb on China Export Growth as Stocks Fluctuate

Metals Climb on China Export Growth as Stocks Fluctuate

By Stephen Kirkland and Jason Clenfield

Industrial metals advanced with the Australian and New Zealand currencies as China’s exports topped forecasts. European stocks swung between gains and losses before the region’s finance chiefs meet to discuss Greek aid.

Copper jumped 0.7 percent at 8:20 a.m. in New York. The yuan climbed to a 19-year high and the so-called Aussie gained against its 16 major peers. The Stoxx Europe 600 Index slipped less than 0.1 percent, with trading volume 14 percent below the 30-day average. Standard & Poor’s 500 Index futures added 0.3 percent, indicating the benchmark gauge will rebound from its worst week in five months. Spain’s 10-year note yield rose four basis points. U.S. bond markets were closed for a holiday.

China’s exports jumped 11.6 percent in October, more than the 10 percent median estimate in a Bloomberg survey of 30 analysts, data from the customs administration showed on Nov. 10. European finance ministers meet later today in Brussels after Greek lawmakers passed a 2013 budget needed to unlock bailout funds.

“Global industrial production momentum has begun to improve, led by the U.S. and China,” Aditya Bagaria, a currency strategist at Credit Suisse Group AG in London, said in a report received today. “But for now, risk appetite and risky assets are more likely to be driven by perceptions of progress on the key political uncertainties.” In Europe, “risks for further delays on Greek issues are high at today’s Eurogroup meeting,” Bagaria said.

Fiscal Cliff
Lawmakers from both major U.S. parties and investors including Pacific Investment Management Co. predicted a resolution to the standoff on the so-called fiscal cliff that threatens to trigger $607 billion in tax increases and spending cuts. Senate Budget Committee Chairman Kent Conrad, a North Dakota Democrat, said a “framework agreement” can be reached. Pimco, which runs the world’s largest bond fund, sees as much as a 70 percent chance a compromise will be struck.

Copper rebounded from the lowest close since August and aluminum added 1.2 percent. China is the biggest buyer of copper and aluminum. Oil in New York fell 0.5 percent to $85.63 a barrel. Soybeans declined as much as 2.1 percent to $14.2125 a bushel, the lowest since June 29.

The Australian dollar rose 0.5 percent versus the U.S. currency and New Zealand’s dollar strengthened 0.4 percent. The euro appreciated 0.1 percent to $1.2727 after sliding to $1.2690 on Nov. 9, the weakest level since Sept. 7.

China’s yuan strengthened to 6.2291 per dollar. The central bank raised its reference rate and the securities regulator said a government quota will be increased to allow more yuan raised overseas to be invested in domestic capital markets.

Telecom Italia
In Europe, Telecom Italia SpA (TIT) climbed 4.6 percent as a person with direct knowledge of the bid said Egyptian billionaire Naguib Sawiris, founder of Orascom Telecom Holding SAE, offered to purchase a stake in the Italian phone company. Cobham Plc tumbled 7.8 percent as the world’s largest maker of airborne-refueling equipment forecast weaker sales and profitability next year.

The MSCI Asia Pacific dropped 0.4 percent and the Nikkei 225 Stock Average slid 0.9 percent after a report showed Japan’s economy contracted last quarter by the most since the earthquake and tsunami in early 2011.

Three stocks fell for every two that gained in the MSCI Emerging Markets Index (MXEF), which was little changed. India’s Sensex lost less than 0.1 percent after industrial production unexpectedly fell, while Russia’s Micex Index increased 0.4 percent. Brazil’s Bovespa index slipped 0.2 percent. South Korea’s Kospi Index slipped 0.2 percent. The Shanghai Composite Index (SHCOMP) climbed 0.5 percent.

Gasoline prices post biggest fall in nearly 4 years

By Sinead Carew; Editing by Marguerita Choy
The average U.S. price for a gallon of regular gasoline took its biggest drop since 2008 in the past two weeks, due to lower crude oil prices, a big price drop in pump prices in California and Hurricane Sandy, according to a widely followed survey released on Sunday.

Gasoline prices averaged $3.5454 per gallon in the United States on Nov. 2, down 20.75 cents from Oct.19 when drivers were paying $3.7529 at the pump, Lundberg said. The decline was the biggest two-week price drop since the survey recorded a 21.9 cents price decline Dec. 5, 2008 due to a crash in petroleum demand during the global recession.

In Chicago, gas prices averaged $3.599 Sunday, down a penny from last week, according to the AAA Fuel Gauge report. Prices are down 10 percent from a month ago when regular gasoline averaged $4.01 in the Chicago area.

Even though many people had to line up for gasoline for hours after Sandy devastated much of the Northeast coast, the storm played a part in the price decline as many would-be consumers were not able to travel as a result, according Trilby Lundberg, editor of the Lundberg Survey.

Lundberg also cited the seasonal dip in demand that typically comes after August.

While demand appeared to be very high for gasoline in New York and New Jersey after the storm, Lundberg said that purchases were down because many people could not get to fuel.

However, supply shortages were not causing an increase in the average price of gasoline, according Lundberg.

“There is a fear among retailers that they will be accused and prosecuted for price gouging if they raise prices enough to prevent running out,” she said, adding that the problems would be unlikely to end soon.

“It’s going to be a long and hard recovery for infrastructure and fuel supply but also for fuel demand,” Lundberg said.

Another reason for the total U.S. price decline in the latest survey is California, the biggest state consumer, where pump prices fell 49 cents in past two weeks after an extreme price increase a month ago because of refinery problems.

The November 2 survey shows that gas prices have fallen a total of 29.21 cents in the last month, Lundberg said.

The highest prices for regular gasoline recorded in the November 2 survey were in San Francisco at $4.05 a gallon, while drivers in Memphis, Tennessee were paying the least at $3.11 per gallon.
7:41 a.m. CST, November 5, 2012

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