Farallon Resources Ltd. (fka FRLIF)

[the cork]

Zinc surges, Copper Climbs in Shanghai as Equities Rebound, Dollar Halts Five-Day Gain

By Glenys Sim - Aug 26, 2010 12:31 AM PT


Copper climbed for the first time in three days in Asia, as equities rebounded and the dollar halted a five-day advance, boosting the global economic outlook. Zinc, lead and nickel rose.

Copper for three-month delivery on the London Metal Exchange rose as much as 1.8 percent to $7,230 a metric ton and traded at $7,214 at 3:13 p.m. in Singapore. The metal, used in construction and appliances, dropped to $7,028.25 a ton yesterday, the lowest level since July 27.

“Rising equities always gives sentiment a boost,” said Cheng Wei, an analyst at Jiangxi Rich Futures Co. “To some extent - the relationship isn’t always so clear these days - the dollar’s performance will also influence metals prices.”

The December-delivery contract on the Shanghai Futures Exchange gained for the first time in three days, by as much as 1.4 percent, before ending the day 1.1 percent higher at 57,330 yuan ($8,431) a ton.

U.S. stocks advanced yesterday as investors speculated that recent declines in equities overshot the potential damage from a slowdown in the economy. The benchmark MSCI Asia Pacific Index gained for the first time in three days. The dollar dropped against a six-currency basket as traders increased bets that the Federal Reserve will cut interest rates to stimulate growth.

“Recent economic data has raised concerns about weakening demand but I don’t think it’s as bad as the price action in the past few days suggests,” said Cheng. “Supply remains constrained, with smelter utilization rates relatively low as the concentrates market remains tight.”

Aluminum in London advanced 0.8 percent to $2,019 a ton, zinc surged 3.9 percent to $2,040.50 ton, and lead jumped 2.8 percent to $2,015 a ton. Nickel rose 1.8 percent to $20,460 a ton and tin was 1.5 percent higher at $20,650 a ton.

http://www.bloomberg.com/news/2010-08-26/copper-climbs-for-first-time-in-three-days-as-equities-gain-dollar-drops.html