MEIR ON METALS: Markets tread water ahead of key summit; early signals mixed

Dec 07, 2011 | 10:27 AM |

Analyst Ed Meir looks at what is moving the metal markets on Wednesday. Copper and general commentary: Metals retreated modestly on December 6 in very quiet trading, as Monday’s Standard & Poor’s warning of a likely debt downgrade for eurozone countries continued to weigh on the complex. Copper finished lower for the first time in three days, shedding $105 on the day. Volume was on the light side, with a little more than 40,000 lots trading on COMEX, about 30% less than usual. Other markets finished modestly higher, with the dollar, energy and US equities all up for the day. The subdued tone is continuing as of this writing. Metals are slightly lower, as are energy prices. The euro is trading at $1.3380, down slightly, while US stocks are expected to open higher on the back of a firmer tone seen out of Europe. All in all, we are in a holding pattern ahead of the European leadership summit meeting that will take place on December 8-9. So far, we are getting mixed signals regarding the outcome. The French....