DJ BASE METALS: Comex Copper Seen 8 Cents Higher At Pit Open
DOW JONES NEWSWIRES
December copper futures are expected to open floor trading around 8 cents a
pound higher Monday, based on electronic activity ahead of the pit session on
the Comex division of the New York Mercantile Exchange.
Copper rose in overseas trading overnight as Asian stock bourses recovered
after monetary authorities around the world announced measures to restore
confidence in the global financial system.
"Overnight, U.S. futures, metals and Asian equities seem to be taking an
optimist attitude to the weekend's talks in which the U.S. Fed said they would
consider every option for restoring confidence, and in Europe there seems to
have been an agreement to guarantee loans between banks, put money into banks
and defreeze credit markets," said William Adams, analyst with BaseMetals.com.
"All in all, it looks like governments have realized that they have to do
whatever (is) necessary to underpin the financial sector and keep money flowing
through the economy.
"The result seems to be a relief rally. The question is will it be a
meaningful one that stops the rot."
Overseas stock markets surged, and the December S&P 500 futures are up 46.70
points to 937.40 in overnight screen trading ahead of the open on Wall Street.
The euro is up to $1.3602 from $1.3413 late Friday afternoon. November crude
oil is up $3.45 to $81.15 a barrel.
No major U.S. economic reports are scheduled for release Monday due to the
Columbus Day holiday.
Reports this week include the fiscal 2008 budget balance on Tuesday, then a
full slate Wednesday that includes the Producer Price Index, retail sales, New
York Fed manufacturing survey and Federal Reserve's Beige Book. Thursday brings
weekly jobless claims, the Consumer Price Index, industrial production and
Philadelphia Fed manufacturing index, followed by housing starts and University
of Michigan consumer-sentiment index on Friday.
In New York Friday, copper futures hit their lowest point in more than two
years while equities markets continued to get pummeled and the outlook for
demand for the industrial metal remained bleak as the financial crisis bleeds
into the wider economy, analysts said. December copper shed 26.15 cents, or
nearly 11%, to settle at $2.1445 a pound.
Inventories of copper stored in London Metal Exchange warehouses fell 75
metric tons Monday, leaving them at 209,325. The most recent Comex inventory
data, released late Friday afternoon, were down 138 short tons at 9,426 short
tons.
-By Allen Sykora, Dow Jones Newswires; 541-318-8765;
allen.sykora@dowjones.com
