Metals ended lower yesterday, but as has been the pattern over the last several days, losses were pared down by the close. Trading was heavy, with copper COMEX volumes running at 78,000 lots by late in the day, nearly two-thirds above the 30-day average, this according to preliminary Thomson Reuters data. All week, markets have been watching Greece, but for now, the waiting continues. Various Greek party heads have yet to come up with an agreement amongst themselves as to what exactly they will try to get through Parliament, postponing a decision that should have come out yesterday to
Metals retreated yesterday in a somewhat overdue correction from relatively overbought levels. In addition, there are growing concerns about demand out of China, reinforced again today after we got the latest Shanghai stock figures, tabulated in the report contained in our commodity link (above). We note here that over a two-week period, copper stocks have increased a whopping 48,000 tons, with equally strong gains seen in aluminum, although the zinc build has been relatively modest. A spot check of off-exchange Chinese warehouses around Shanghai by a Reuters reporter this week also revealed substantial amounts of inventories lying around, which according
Mixed close in Asian equities, China ends with slight gain with continued speculation of PBOC RRR cut. European stocks trading higher, post better then expected service PMI data out of some EU countries. However, volumes remain light ahead of Payroll data this AM. China Wen said they are will to cooperate on EU crisis but said China has no ability or intention to "buy Europe". No developments in Greek dead. UK press report that EU has found a 15 bil “black hole” in Greek finances. Greek Government spokesman said main Greek debt swap parameters are ready. EU source said
Copper finished sharply higher yesterday, buoyed by a slew of manufacturing data that showed things were either improving or stabilizing, but not necessarily getting any worse. We referenced many of these numbers in yesterday's commentary, but the main readings that helped the firmer tone were reports out of Germany and US, where manufacturing activity in each country rose to four and seven-month high, respectively, offsetting the more neutral figures out of China. Other reports out of the US yesterday had the ADP reporting that 170,000 jobs were added in January, somewhat less than expected, but investors were nonetheless pleased
Copper fell for a third straight day on Tuesday, hit by Euro weakness and unimpressive macro data out of the US. However, for the month as a whole, the complex had a good run, with prices up some 10% over the period, its biggest gain in three months. For that matter, the broader 19-commodity Thomson Reuters-Jefferies CRB index was up 2.3% over the course of the month after declining in both November and December. Precious metals helped the overall gain in the index, with gold, silver, and platinum, each up by 10%, 20%, and 13% respectively. In macro news