Copper Advances to Two-Week High on U.S. Stimulus: LME Preview

Jan. 30 (Bloomberg) -- Copper rose to a two-week high in London as economists forecast the U.S. will keep stimulating the economy until the first quarter of next year.

Market News:

-- Federal Reserve Chairman Ben S. Bernanke’s latest round of bond buying will reach $1.14 trillion before he ends the program in the first quarter of 2014, according to median estimates in a Bloomberg survey of economists. NSN MHESXH07SXKY <GO>

-- Asian stocks advanced to a 17-month high, led by Yahoo Japan Corp., as investors awaited the outcome of a Federal Reserve policy meeting. The yen weakened against all its major peers and copper advanced. NSN MHFE8R0D9L35 <GO>

-- Deutsche Bank AG will probably report a loss in the fourth quarter because of restructuring costs, missing out on a market rebound that helped profit surge at U.S. rivals such as Goldman Sachs Group Inc. NSN MHE6MZ6S972B <GO>

-- Chinese incomes rose faster in the countryside than in cities for a third straight year in 2012 as migrant workers boosted their pay and the government strengthened the social safety net. NSN MHFAIY07SXKX <GO>

-- Japan is set to increase its defense budget for the first time in 11 years and boost Coast Guard spending as it copes with mounting incursions by Chinese ships in waters near islands claimed by both countries. NSN MHF4IL6KLVSN <GO>

Metals News:

-- Iron ore is poised to decline through the end of March as China, the world’s largest user, has a week-long holiday next month and mills buy more domestic supplies, Australia & New Zealand Banking Group Ltd. said. NSN MHFAWZ07SXKX <GO>

-- The world’s biggest mining and steel companies have wiped about $50 billion off project valuations in the past year and the purge is poised to continue this earnings season as managers reassess expensive takeovers. NSN MHEGUP6JIK8Y <GO>

-- Sales of American Eagle silver coins by the U.S. Mint jumped to a record this month on increased demand for an alternative to currencies as the U.S. central bank presses on with unprecedented stimulus. NSN MHF8886S972T <GO>

-- Copper supply and demand are about equal, and just a 1 percent shift in the balance may move prices $1,000 a metric ton in either direction, UBS AG said. NSN MHFF3U6JIJUO <GO>

-- Vale SA, the biggest iron-ore producer, said prices of the steel-making ingredient are supported by prospects of China growing 6 percent to 7 percent. NSN MHEGAS6KLW0D <GO>

-- Steel reinforcement-bar futures advanced to the highest level in more than six months amid optimism that demand is rising in China as the Shanghai stock market headed for a second monthly gain. NSN MHF32X6KLVRX <GO>

-- Investor holdings in palladium futures have gained for a fifth straight month to a record, a sign of further gains for prices that already are the highest in 16 months, according to FuturePath Trading LLC. NSN MHEO0G6S9731 <GO>

Metals Prices:

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-- Copper advanced 0.7 percent to $8,160 a metric at 7:34 a.m. on the London Metal Exchange. Relative strength index 58. -- Aluminum climbed 0.5 percent to $2,070 a ton. RSI 50. -- Nickel increased 0.2 percent at $17,885 a ton. RSI 60. -- Lead gained 0.5 percent to $2,416 a ton. RSI 63. -- Tin was up 0.4 percent at $24,699 a ton. RSI 61. -- Zinc rose 1.1 percent to $2,117 a ton. RSI 64.

Other markets: Last % Change % YTD

U.S. Dollar Index 79.57 0.0 -0.3 Crude Oil $97.54 0.0 6.2 Gold $1,668.05 0.3 -0.4 MSCI World Index 1,412.99 0.2 5.6

Economic Events:

Survey Prior Time

(London) IT Business Confidence 89.5 88.9 09:00 EC Euro-Zone Consumer Confidence -23.9 -23.9 10:00 US ADP Employment Change 165K 215K 13:15 US GDP 4Q 1.1% 3.1% 13:30 US Personal Consumption 2.1% 1.6% 13:30 US FOMC Rate Decision 0.25% 0.25% 19:15 JN Industrial Production 4.1% -1.4% 23:50

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--Editors: Claudia Carpenter, Alastair Reed