London copper ticks higher on firm equities, subdued dollar


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London copper prices edged up on Thursday, buoyed by an uptick in equities and a slight pullback in the U.S. dollar, although dismal demand outlook amid growing recession worries kept gains in check.

Three-month copper on the London Metal Exchange was up 0.2% at $8,052 a tonne, as of 0228 GMT, while the most-traded September copper contract on the Shanghai Futures Exchange lost 0.7% to 62,910 yuan ($9,178.72) a tonne.

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Prices of copper, often used as an indicator of global economic health, have recouped nearly 16% from a 20-month low touched in mid-July, but are down 17% so far this year.

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New orders for U.S.-manufactured capital goods increased in July, but the pace slowed from the prior month, suggesting a moderate rebound in business spending this quarter.

Aluminum producer Speira GmbH is considering cutting production at its German smelter to 50% of total capacity in response to surging energy costs, Bloomberg News reported on Wednesday.

Asian share markets were broadly positive while the dollar was slightly weaker, with investors nervously awaiting the U.S. Federal Reserve’s annual Jackson Hole conference for clues on how sharp future interest rate hikes might be.

The global refined copper market showed a 66,000 tonne deficit in June, compared with a 30,000 tonne deficit in May, the International Copper Study Group (ICSG) said in its latest monthly bulletin.

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LME aluminum was flat at $2,428.50 a tonne, zinc added 0.6% to $3,533.50 a tonne, lead was up 0.6% at $1,985 a tonne.

ShFE nickel gained 0.5% to 171,520 yuan a tonne, tin lost 0.6% to 198,650 yuan a tonne, while aluminum eased 0.2% to 18,870 a tonne.

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DATA/EVENTS (GMT)

0600 Germany GDP Detailed QQ SA, YY NSA Q2

0645 France Business Climate Mfg, Overall Aug

0800 Germany Ifo Business Climate New Aug

0800 Germany Ifo Curr Conditions New Aug

0800 Germany Ifo Expectations New Aug

1000 France Unemp Class-A SA July

1230 US GDP 2nd Estimate Q2

1230 US Initial Jobless Clm Weekly ($1 = 6.8539 Chinese yuan renminbi) (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)



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