SINGAPORE, Oct 2: London copper futures edged lower on Wednesday, adding to losses of more than 1 percent in the prior session, as a U.S. Government shutdown clouded the outlook for the world’s top economy.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange had dropped half a percent to $7,163.50 a tonne by 0025 GMT. The contract touched a low of $7,147 on Tuesday, its weakest since Sept. 24.
* Chinese markets are closed through Oct. 7 for the National Day holiday, slashing liquidity in the Asian timezone.
* President Barack Obama and congressional Republicans came no closer to ending a standoff on Tuesday that has forced the first government shutdown in 17 years and thrown hundreds of thousands of federal employees out of work.
* But some investors bet the shutdown would be be short-lived, with the U.S. Dollar and U.S. Stock futures holding steady on Wednesday.
* The U.S. Labor Department’s main statistical agency said it would not release economic reports until government operations resume. The Bureau of Labor Statistics produces some of the world’s most closely watched economic indicators, including a monthly employment report that was scheduled for release on Friday.
* European Central Bank policymakers meeting later in the day are likely to hold off policy action for now but keep open the options of an interest rate cut or a bumper cash injection should the euro zone outlook sour.
* Nyrstar, the world’s largest zinc smelter, agreed a deal with Noble Group Limited under which the trading house would sell Nyrstar’s European zinc and also take a 1-percent stake in the Belgian company.
* Australia, the world’s biggest producer of iron ore, forecast a 17 percent rise in exports in the 2013/14 fiscal year as producers beef up operations, despite signs that demand growth is softening.
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MARKETS NEWS
* U.S. S&P futures added 0.1 percent on Wednesday after the cash index advanced 0.8 percent the day before.
DATA/EVENTS (GMT)
0900 Euro zone Producer price index
1215 U.S. ADP employment report
1230 European Central Bank interest rate decision
1345 U.S. ISM-New York business activity
1930 Federal Reserve Chairman Bernanke speaks
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Three month LME tin (agencies)
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