Copper Futures Rise as Dollar Weakens Amid Euro Zone Concerns

Copper futures rebounded Tuesday after two days of losses, as upbeat sentiment in stock markets and supportive currency moves drew investors back to the industrial metal. The price of copper, used in a wide range of applications by the construction and manufacturing sectors, was boosted by a weakening dollar, which made the futures cheaper for buyers using other currencies. The December contract for copper was recently up 2.85 cents, or 0.8%, to $3.564 a pound on the Comex division of the New York Mercantile Exchange.

Key Takeaways:

• Copper futures rose 2.85 cents, or 0.8%, to $3.564 a pound on the Comex division of the New York Mercantile Exchange.
• The price of copper rebounded after two days of losses, driven by upbeat sentiment in stock markets and supportive currency moves.
• A weakening dollar made copper futures cheaper for buyers using other currencies, boosting the price of the industrial metal.
• Investors were keeping a close watch on Italy's parliament vote on routine budget measures, which could upset Prime Minister Silvio Berlusconi's government.
• Barclays Capital analyst Gayle Berry noted that industrial metals, including copper, "have yet to decide on a clear direction" due to the ongoing European debt crisis.
• Copper futures have closely tracked developments in Europe's debt crisis, as a credit crunch there would likely limit demand for raw materials.

Statistics:

• Copper futures rose 2.85 cents, or 0.8%, to $3.564 a pound on the Comex division of the New York Mercantile Exchange.
• The U.S. dollar eased against currencies of major trading partners, providing a lift to dollar-denominated copper.
• Copper futures rebounded after two consecutive days of losses, totaling a 4.65 cents, or 1.3% decline.

Sources:

• Dow Jones Commodities News via Comtex
• Comex division of the New York Mercantile Exchange
• Barclays Capital
• Matt Day, Dow Jones Newswires
• Dow Jones & Company, Inc.