Copper May Fall as S&P Cuts Spain Credit Rating: LME Preview

Copper may pare a second weekly advance after Spain’s sovereign debt rating was cut for a second time this year by Standard & Poor’s, adding to concerns the European sovereign debt crisis may worsen and damp the demand outlook for the metals.

Market News:

-- European equity futures fell, the euro weakened for the first time in four days and oil slid after Standard & Poor’s cut

-- Spain’s sovereign credit rating was cut for the second time

-- The Bank of Japan expanded its plan for government-bond

-- The biggest increase in consumer spending in a year probably

-- Francois Hollande, the frontrunner in the French presidential

Metals News:

-- Chile’s President Sebastian Pinera announced plans last night

-- Japan’s shipments of rolled-aluminum products gained 1.7

-- Nippon Steel Corp., Japan’s largest steekmaker, returned to

-- Norsk Hydro ASA, Europe’s third-largest aluminum producer,

Metal Prices:

-- Copper fell 0.3 percent to $8,293 a metric ton by 7:37
a.m. on the London Metal Exchange. Relative Strength Index 52.
-- Aluminum declined 0.1 percent to 2,083 a ton. RSI 43.
-- Zinc dropped 0.7 percent to $2,023 a ton. RSI 51.
-- Lead fell 0.3 percent to $2,115 a ton. RSI 55.
-- Nickel gained 0.1 percent to $18,220 a ton. RSI 51.
-- Tin rose 0.2 percent to $22,350 a ton. RSI 51.
Other Markets:
                     Last           % Change       % YTD
U.S. Dollar Index   79.186            0.3           -1.2
Crude oil           $103.95          -0.6            5.2
Gold                $1,652.60        -0.3            5.7
MSCI World Index    1,291.22         -0.2            9.2
Economic events:
                                    Forecast    Prior     Time
U.S. GDP Growth QoQ             1Q    2.5%       3.0%     13:30
U.S. U. of Michigan Confidence APR    75.7       75.7     14:55


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