Copper drops as dollar advances
Thursday, 20 May 2010
LONDON, May 19 (Bloomberg): Copper fell in London as the dollar strengthened after Germany prohibited speculating on sovereign debt, sending the euro to the lowest level in more than four years.
The US Dollar Index, a six-currency gauge of the greenback's strength, rose for a seventh day in a row. The Markit iTraxx Crossover index of credit-default swaps on 50 European companies, which typically rises as investor confidence deteriorates, jumped. The MSCI World Index of shares retreated for a fifth day.
"Higher risk aversion, as witnessed by the stronger dollar and weaker equity markets worldwide, is bringing metals under pressure," Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt, said by phone today.
Copper for delivery in three months fell $185, or 2.8 percent, to $6,510 a metric ton at 9:51 a.m. on the London Metal Exchange.
The US Dollar Index, a six-currency gauge of the greenback's strength, rose for a seventh day in a row. The Markit iTraxx Crossover index of credit-default swaps on 50 European companies, which typically rises as investor confidence deteriorates, jumped. The MSCI World Index of shares retreated for a fifth day.
"Higher risk aversion, as witnessed by the stronger dollar and weaker equity markets worldwide, is bringing metals under pressure," Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt, said by phone today.
Copper for delivery in three months fell $185, or 2.8 percent, to $6,510 a metric ton at 9:51 a.m. on the London Metal Exchange.