Market News Commodities Drop From Six-Month High as Greek Default Concerns Intensify |
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Commodities fell from a six-month high, paced by declines in copper and crude, after European leaders delayed a decision on The Standard & Poor's GSCI Spot Index lost as much as 0.3 percent to 680.79 after reaching 687.80 yesterday, the highest level since Aug. 2. The gauge was at 680.84 at 1:37 p.m. in Singapore. Three-month copper fell as much as 1.6 percent to $8,233 per metric ton in London, set for the longest losing run since Nov. 10. Crude dropped as much as 0.4 percent in New York. Concern that Greece will miss a debt payment next month grew as a decision slated for yesterday on 130 billion euros ($169 billion) of aid was postponed to Feb. 20. Ratings for global banks may be cut as lenders face risks of rising funding costs amid Europe's debt woes, Moody's Investors Service said. "Europe is far off from reaching a solution," said Dominic Schnider, global head of commodity research at UBS AG's wealth management unit, said by phone from Singapore. "That's the drag that we have, which will hurt demand for commodities." Commodities have gained 5.6 percent this year, bolstered by data that shows the world's largest economy may be recovering. Factories in the U.S. boosted production in January, capping the biggest two-month increase in more than two years, according to Federal Reserve figures. The jobless rate fell to the lowest level in three years last month, while consumer credit racked up the biggest two-month gain in a decade at the end of 2011. Oil for March delivery was at $101.45 per barrel, down 0.3 percent on the New York Mercantile Exchange after ending yesterday at the highest close since Jan. 10. Prices have been supported by reports that Iran halted shipments to Europe. Copper futures traded at $8,250.50 per ton on the London Metal Exchange, as aluminum, zinc, nickel, lead and tin prices dropped. Spot gold declined 0.4 percent to $1,720.68 an ounce as silver and platinum weakened. The euro lost 0.3 percent to $1.3026 as of 1:35 p.m. in Tokyo after earlier sliding to $1.3008, the lowest level since Jan. 25. France and Spain are scheduled to auction as much as 14.3 billion euros in bonds today. To contact the reporter on this story: Chanyaporn Chanjaroen in London at This e-mail address is being protected from spambots. You need JavaScript enabled to view it To contact the editor responsible for this story: James Poole at This e-mail address is being protected from spambots. You need JavaScript enabled to view it More From Bloomberg
Authors: Commodities - Yahoo! News Search Results |
