New York - Arabstoday
Copper rose on Friday after data showed US consumer prices fell slightly more than expected, but late in the day it pared gains as the dollar rose on fears about the results of European bank stress tests. Three-month copper on the London Metal Exchange closed at $9,672 (Dh35,496.24) a tonne from $9,630 a tonne at the close on Thursday. Prices had climbed to $9,723.75 earlier in the session after data showed US consumer prices in June posted their biggest drop in a year, but came under pressure as the euro fell against the dollar on concerns ahead of European bank stress tests. But the results of the tests, which came out after LME ring-trading closed, showed that eight of 90 banks had failed, roughly in line with expectations. The tests did not build in the impact of a Greek default, and all big banks passed. Copper inventories in warehouses monitored by the Shanghai Futures Exchange rose 22.3 per cent from last Friday, the exchange said on Friday. \"The bottom line is that in Shanghai premia have come off again, and demand is not as strong as it was. I think [China] probably hasn\'t gotten accustomed to high prices,\" Michael Widmer, analyst at Bank of America-Merrill Lynch said. Copper inventories at LME warehouses were unchanged at 462,025 tonnes, latest data showed. Still, analysts are optimistic about copper\'s longer-term outlook. Tin closed at $27,200 from $27,425 a tonne and zinc was $2,375 from $2,350 a tonne. Lead closed at $2,708 from $2,665 and aluminium was $2,494 from $2,507. Nickel was $24,155 from $24,210. From / Gulf News