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Copper remains lower after Italian bond sale, Jackson Hole in focus

Published 08/29/2012, 05:23 AM
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Investing.com - Copper futures were lower during European morning hours on Wednesday, falling to a six-day low as concerns over the outlook for global economic growth continued to weigh while investors awaited comments by Federal Reserve Chairman Ben Bernanke on Friday.

On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.439 a pound during European morning trade, dropping 0.85%.

Earlier in the day, prices fell by as much as 1.2% to hit a session low of USD3.428 a pound, the weakest since August 21.

Italy’s Treasury sold the full targeted amount of EUR9.00 billion worth of six-month government bonds at an average yield of 1.585% earlier in the day, the lowest since March and down from 2.957% at a similar auction last month.

Growing expectations that the European Central Bank will implement policy measures to help stabilize the euro zone's sovereign debt markets at its next policy meeting in early September has been supporting market sentiment in recent weeks.

On Tuesday, the ECB said that its President Mario Draghi would not be attending the Federal Reserve’s annual Jackson Hole economic symposium in Wyoming, due to his "heavy workload”.

The unexpected announcement fuelled expectations that the ECB is working on fresh policy measures to help stabilize the region’s sovereign debt markets, ahead of its next policy meeting on September 6.

The ECB president had been due to speak at the summit on Saturday, one day after a keenly anticipated speech by Federal Reserve Chairman Ben Bernanke, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.

Bernanke has used the event the previous two years to flag the Fed's intention on more easing.

Copper prices have rallied in recent weeks, climbing nearly 7% since August 2, amid growing hopes policymakers in the U.S., Europe and China will introduce fresh easing measures to prop up their respective economies.

Elsewhere on the Comex, gold for October delivery declined 0.1% to trade at USD1,665.65 a troy ounce, while silver for December delivery fell 0.25% to trade at USD30.89 a troy ounce.

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