MEIR ON METALS: Metals tread water in quiet conditions; copper backs still very strong

Apr 30, 2012 | 11:12 AM |

Analyst Ed Meir looks at what is moving the metal markets on Monday April 30. Copper and general commentary: Metals continued to work higher on Friday, with copper rallying to its highest level in nearly three weeks amid growing signs of both physical and futures-related tightness. In addition, the fact that the US GDP number came in on the weaker side (as we said it might in Friday’s note) ironically helped the advance as well, since it not only weakened the dollar, but revived hopes of some sort of quantitative easing taking place down the road. Right now, markets have opened the new week in quiet fashion, with metals pretty much mixed. Copper did get to a high of $8,496 earlier, but prices have since retraced and are now in negative territory, while other metals are not doing much either. In other markets, precious metals and energy are both down a touch, as is the euro, now trading at $1.3220. US stocks have opened higher. In macro news, in Europe, London’s Financial Times reports on Monday that a new plan is afoot to segregate Spain’s problem property loans into a “bad bank” or an asset management company in order to relieve the burden on other institutions. The thinking is that something needs to be done in addition....