Market Nuggets: Commerzbank: LME Copper Tops $8,000/MT On Monetary-Stimulus Hopes

Monday September 10, 2012 9:49 AM

Copper has traded above $8,000 per metric ton for the first time since May on hopes for global stimulus, says Commerzbank. Other base metals are also higher. “Primarily, the increase in prices comes courtesy of hopes that central banks will initiate monetary-easing measures,” the bank says. “After the ECB’s announcement that it intends to purchase unlimited government bonds, the U.S. Federal Reserve may also launch QE3 in the near future. China is tackling its cooling economy--growth in industrial production and fixed assets investments fell further in August--by implementing economic stimulus programs.” For example, the bank notes China’s planning authority has given the go-ahead for some infrastructural projects. However, Commerzbank adds, China’s government and central bank do not have “unlimited room for maneuver” since inflation edged up slightly in August. “What is more, prices on the real-estate market have likewise picked up of late, which is likely to reduce the willingness to initiate stimulus measures,” Commerzbank says. As of 9:41 a.m. EDT, three-months copper was up $105 to $8,075 a metric ton on the London Metal Exchange, peaking at $8,109.75 so far, its strongest level since May 10