Copper Surges on Europe, Bears Still Have Hopes
Copper futures jumped after the European leaders at last revealed some of their plans to resolve the unpleasant situation with debt in peripheral economies. Yet bears don’t feel completely smashed by the news as the rally of the industrial metal may end despite the support from Europe.
The European leaders agreed to increase the bailout fund. The European banks will voluntary write down 50 percent of Greece’s debt. Traders were waiting for good news from Europe for quite some time and after receiving such news were ready to risk in search of profit instead of playing safe. The resulting risk appetite spurred commodities across the board.
Bears aren’t disappointed, though, as the end for the European debt story is far away and the problems are still plaguing the Eurozone. China also makes the futures of industrial metals, and copper in particular, uncertain as the slower economic growth in the Asian nation can damp demand. And don’t forget that there is the US with its problems. All in all, copper currently is in good grace of traders, but its prospects are unclear.
Copper traded at $3.6970 per pound as of 2:07 GMT today in electronic trading on COMEX, following the surge to $3.6890 from $3.4880 per pound yesterday.
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