Base Metals Mixed
Mar 26th, 2009 | By Doug Casey | Category: Financial NewsThe base metals were mixed on Wednesday. Copper fell as low as $1.74 in the late pre-dawn hours, perked back up during the New York morning, but faded again late to finish at $1.7695/lb., down three-quarters of a cent.
Nickel nosedived in the pre-dawn hours for the second straight day, tried to rally back but gave it up after noon, closing at $4.2547/lb., down 8 cents. Zinc bottomed at the New York open, but put in a spirited rally that kept it in the green despite some afternoon selling, as it ended at $0.5642/lb., up just over a tenth of a cent. Aluminum was modestly lower, dropping a third of a cent, to $0.6249/lb., while lead had a good day, tacking on a penny and a half, to $0.5803/lb.
Copper held up fairly well in the face of weak interest because of the dismal economic reports trickling in from around the globe.
For example, German business confidence slid to the lowest in more than 26 years this month, Munich’s Ifo institute said yesterday.
And Malaysia’s central bank said that that nation’s economy, Southeast Asia’s third-largest, is likely to undergo a “significant” contraction in this year’s first half.
“We still are not seeing more important evidence of demand picking up, which is why we think metals prices could head back lower,” said Edward Meir, of MF Global (NYSE:MF).
William O’Neill, of Logic Advisors in Upper Saddle River, New Jersey, was a bit more upbeat, saying that, “The combination of the durable goods and the housing report has been good for copper … We’re having a bit of rebound in market psychology now that we’ve seen some better economic data.”
And Tom Hartman, of Altavest Worldwide Trading in Mission Viejo, California, suggested that the “data are not a clear signal that economic recovery is already underway, but perhaps signal a bottom being laid out.”
In company news, Aluminum Corp. of China (NYSE:ACH)has won approval from Australia’s competition regulator, clearing a major hurdle for the Chinese state-controlled company’s proposed $19.5 billion investment in Rio Tinto (NYSE:RTP).
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.