Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Copper remains lower after Spain bond sale, eyes on central banks

Published 08/28/2012, 05:13 AM
GC
-
HG
-
SI
-
Investing.com - Copper futures were lower during European morning hours on Tuesday, holding on to mild losses after Spain saw borrowing costs collapse at an auction of short-term government debt earlier in the day.

On the Comex division of the New York Mercantile Exchange, copper futures for December delivery traded at USD3.471 a pound during European morning trade, shedding 0.35%.

Spain’s Treasury sold EUR1.67 billion worth of three-month government bonds at an average yield of 0.946% earlier in the day, down sharply from 2.434% at a similar auction last month.

The country also sold EUR1.93 billion of six-month debt at an average yield of 2.026%, down from 3.691% 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.

ECB President Mario Draghi will speak at an annual symposium of central bankers and global finance ministers in Jackson Hole, Wyoming at the end of the week.

Market players also looked ahead to a speech by Federal Reserve chairman Ben Bernanke at Jackson Hole, amid ongoing speculation over how close the U.S. central bank is to implementing more stimulus measures.

He 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.

Earlier in the day, prices fell by as much as 0.9% to trade at a session low of USD3.451 a pound, as renewed concern over China’s cooling economy and fears that the debt crisis in the euro zone will worsen dampened demand for the industrial metal.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption, while Europe as a region is the world’s second largest user of the industrial metal.

Elsewhere on the Comex, gold for October delivery declined 0.5% to trade at USD1,665.05 a troy ounce, while silver for December delivery fell 0.8% to trade at USD30.89 a troy ounce.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.