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METALS-Shanghai copper up on hopes of G7 action for euro zone
June 5, 2012 / 2:12 AM / 5 years ago

METALS-Shanghai copper up on hopes of G7 action for euro zone

 SHANGHAI, June 5 (Reuters) - Shanghai copper bounced off its
lowest level in 2012 on Tuesday on hopes that policymakers from
the Group of Seven leading industrialised powers will work out
measures to ease the euro zone debt crisis.	
  The euro and equities clawed back from heavy losses as many
investors paused their selling of riskier assets ahead of an
emergency conference call among G7 finance chiefs later in the
session. The last-miniute talks underlined the heightened global
alarm about strains in the euro zone.    	
 	
 FUNDAMENTALS	
 * The most-active September copper contract on the Shanghai
Futures Exchange regained 1.4 percent to 53,480 yuan
($8,400) a tonne, after hitting a fresh 2012 low of 52,330 yuan
on Monday. 	
 * Some hope that more fiscal integration among euro zone
countries -- a scheme promoted by German Chancellor Angela
Merkel -- will result in a region-wide deposit guarantee scheme
that can help leaders better manage the debt crisis
there. 	
 * Merkel is pressing for much more ambitious measures,
including a central authority to manage euro area finances, and
major new powers for the European Commission, European
Parliament and European Court of Justice.  	
 *  Euro zone factory prices unexpectedly held steady in
April, marking the fourth straight month of weakening inflation
pressures and giving the European Central Bank some space to cut
interest rates as the continent's economy slumps.
 	
 * Spainish Prime Minister Mariano Rajoy is pressing for a
direct European rescue for Spain's banks, with moral support
from the European Commission, but Germany appeared to rule out
the bailout for the euro zone's fourth biggest member.
  	
 * New orders for U.S. factory goods fell in April for the
third time in four months as demand slipped for everything from
cars and machinery to computers, the latest worrisome sign for
the U.S. economy.    	
 * The London Metal Exchange is closed for the Diamond
Jubilee Holiday on June 4 and June 5.	
 	
  * For the top stories in metals and other news, click   	
, or 	
                  	
 MARKET NEWS	
 * Asian shares and commodities staged a mild recovery on
Tuesday, with stocks holding a touch above 2012 lows, as
investors looked to European policymakers and the wider G7 to
take decisive action to address the worsening euro zone crisis.
 	
 *  Hopes of such decisive action also pushed the euro up
further from last week's two-year low, as sellers were tempted
to pare back their huge bets against the currency ahead of the
G7 conference call. 	
 	
 DATA/EVENTS (GMT)	
0230 China HSBC Services PMI             May     	
0758 Euro zone Markit svcs, comp PMI     May     	
1000 Germany Industrial Orders MM        Apr	
1145 U.S. ICSC chain stores yy           Weekly  	
1255 U.S. Redbook retail sales           Weekly  	
1400 U.S. ISM Non-Manufacturing PMI      May     	
	
                                                           
  Base metals prices at 0147 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  SHFE CU FUT SEP2    53480       710     +1.35     -3.86
  SHFE AL FUT SEP2    15950        85     +0.54      0.69
  HG COPPER JUL2     333.40      2.70     +0.82     -2.97
  SHFE ZN FUT SEP2    14690       140     +0.96     -0.71
  SHFE PB FUT         14980        95     +0.64     -2.03
 
Shanghai and COMEX contracts show most active months
                                                           
 ($1 = 6.3645 Chinese yuan)	
	
 (Reporting by Carrie Ho; Editing by Ed Davies and Michael
Perry)	
 	
 

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