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Optimism as EU leaders agree deal and expectation of China loosening monetary policy

Date: Thu, 27 Oct 2011 | Author: Paul Sanderson

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European leaders have agreed a package of measures that they hope will ease the debt crisis gripping the continent.

Bondholders will be expected to take a 50 per cent haircut on Greek debt, while a rescue fund of €1 trillion has also been agreed.

Further measures include bank recapitalisation, a bigger role for the IMF and a commitment from Italy to reduce its debt.

There is also further optimism with the US economy beginning to show signs of momentum, while there is speculation that China will loosen its monetary policy later in this year with growth and inflation there appearing to be more under control.

As a result of this, copper was trading above $7,800 this morning. Yesterday, the official LME price for three month copper was $7,734 (£4,842) on Wednesday from $7,601 (£4,748) a day earlier.

Other metals did not perform as well as copper however.

Aluminium was down a touch to $2,218 from $2,220 on Tuesday, but the fluctuating exchange rate meant the sterling value increased to $1,389 on Wednesday from Tuesday’s £1,387. Alloy fell to $2,095 (£1,312) yesterday from Tuesday’s $2,150 (£1,343).

Lead dropped to $1,962 (£1,228) on Wednesday from $1,985 (£1,240) the day before. Nickel also fell to $19,650 (£12,301) from $19,875 (£12,414) on Tuesday.

Tin moved down to $21,825 (£13,663) yesterday from $22,200 (£13,741) on Tuesday. Zinc was up to $1,863 (£1,166) from $1,858 (£1,161) the day before.

Steel increased to $530 (£332) from $525 (£328). 

Category: Recycling
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