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Base metals fall, except nickel
Updated: 09:32, Monday June 11, 2012
Base metals closed mostly lower on the London Metal Exchange (LME) on Friday, although early losses were pared slightly late in the session amid signs of progress in Europe's debt crisis.
At the PM kerb close, LME three-month copper was 2.6 per cent lower at $US7,295 a metric ton. The red metal earlier fell to $US7,233.25/ton, its lowest price since December 19 last year.
Base metals regained some ground late in Friday's session following well-received comments by US President Barack Obama regarding the euro zone.
Obama said there are specific steps the euro zone could take to solve its debt crisis, such as injecting capital into banks to stabilise the financial system.
His remarks followed reports that Spain could seek aid from the European Union.
The news boosted risk appetite somewhat and saw US stock markets move into positive territory.
Friday's session started on a weak footing amid disappointment following US Federal Reserve Chairman Ben Bernanke's failure to signal new monetary easing in his testimony to Congress on Thursday.
A cut to Spain's credit rating by Fitch Ratings also pushed broad financial markets lower Friday, while China's decision to cut its interest rate raised concerns that its economy is slowing faster than previously expected.
'Base metals remain overwhelmingly macro-driven, with the focus on political developments in Europe--particularly the upcoming Greek election and financial sector troubles in Spain; unveiling of stimulus measures in China; and potential for additional monetary easing from the Fed, the European Central Bank, the Bank of Japan and the Bank of England,' said Credit Suisse.
Nickel put in the strongest performance of the base metals Friday, closing 1.9 per cent higher at $US16,905/ton.
Prices in dollar a metric ton.