Monday, August 18, 2014

Copper rebounds on hopes of stimulus

Copper rebounds on hopes of stimulus
COPPER futures were up on the London Metal Exchange Friday, rebounding from the previous session's slump amid renewed hopes that central banks will step in to boost economic growth.
THE LME's three-month copper contract up was 0.4 per cent at $US6,852 a metric ton.
Economic data released Thursday highlighted weakness in Europe's biggest economies. Germany's gross domestic product GDP shrank by 0.2 per cent in the three months to June, and France's growth remained unchanged for the second quarter in a row. Some investors have taken this as a sign that the European Central Bank may be forced to roll out further economic stimulus measures.
"A sluggish economy and low inflation are fuel for the doves on the ECB Council calling for further monetary easing measures, which could in turn be reflected in higher metal prices," said Commerzbank in a note.

No comments:

Post a Comment