European problems hit the prices of nonferrous metals
On Wednesday, June 15, non-ferrous metals finished the session on LME with a decrease after strengthening of the dollar and the publication of disappointing data on industrial production in the United States.
U.S. industrial production rose in May by 0.1%, although twice bigger level was expected, and the index of Empire State – a measure of the state of industry in the State of New York – was in June in a zone of negative values for the first time since November 2010, having fallen to -7.8 from 11.9.
Investors have started to get nervous about the impact of this data on the prospects for U.S. economic growth and demand.
At the same time euro fell to near three-week minimum against the dollar on the aggravation of the concerns the ability of Europeans to deal with Greek debt crisis.
Moody’s has announced the possibility of revising the ratings (for the worse) of BNP Paribas, Societe Generale and Credit Agricole because of the sensitivity of these banks to “Greek drama”.
At the closing of the session, copper was trading at $ 9154 per tonne – it is by 0.2% worse than the results of trading the previous day.
“Very disappointing data eliminated yesterday’s redundant growth” – said the analyst of FastMarkets.com William Adams.
Other analysts also insist that the metals remain in the general downward trend and might continue to “ramp up” in the coming weeks.
Although the cost of copper futures on the Comex is holding above the psychologically important mark of $ 4 per pound, but their growth is not discussed.
“It’s impressive that metals keep the bar so well under the circumstances,” – said a senior analyst of Olympus Futures Charles Nedoss.
June 16, morning trading kept trend of last day – the prices for metals fell down again on the background of the further weakening of euro.