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LME Review: Up in recent range; US data, steady oil price |
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London Metal Exchange ticked higher Tuesday but remained within recent ranges after a positive reading for U.S. consumer confidence data and oil prices held up, traders said.
LME three-month copper traded up to an intra-day high of $7,670/ton but the low-volume session highlighted some hesitance among market participants about copper's near-term direction, traders said.
"Volumes have been much lower during September compared with the same month last year. Base metals are searching for a sense of direction," Sempra Metals Ltd. analyst John Kemp said.
LME prices have been rangebound for around two weeks since heavy losses in the energy sector spilled over into other commodity markets, dragging off prices and increasing risk aversion among investors.
Heavy losses from the well-publicized troubles of U.S. hedge fund Amaranth in the gas market are said to have triggered a more cautious stance among investors.
Sentiment for copper and the rest of the LME board improved in the afteroon after supportive consumer confidence data at 104.5 for September from 100.2 in August in the afternoon pushed the market higher, Triland Metals Ltd. said in a report.
Oil prices rose to $62 a barrel after falling below the $60/bbl level Monday.
LME nickel was the only metal down on the day after late selling pressure weighed through consumer support.
Workers at Inco Ltd.'s Voisey's Bay operation have scheduled a ratification vote Tuesday for a tentative labor agreement after workers went on strike in late July.
LME aluminium had an erratic trading day, Triland said, "encountering short selling in Asia and the European opening."
Support lifted prices back above the $2,500/ton level later in the day. back |
