Futures Market News
Copper futures, Chilean peso rise as Chinese demand metal
Sep 25, 2012 02:21 PM
Both copper futures and the Chilean peso increased in value on Tuesday, according to published reports.
As Chile's top export, the reddish metal helped the peso climb from its lowest price since September 7, Reuters reports. China, the globe's largest consumer of the reddish metal, is increasingly demanding it, which also enhanced the base metal's price, The Wall Street Journal reports. China accounts for about 40 percent of the globe's consumption of the reddish metal.
The central bank of China boosted liquidity Tuesday with a record injection of 290 billion yuan as part of an effort to alleviate a liquidity pinch.
"The move is intended to address an expected liquidity squeeze ahead of the next week's holiday," states a report penned by analyst Marc Ground with Standard Bank, according to The Wall Street Journal. "Consequently, we feel that the boost to commodity prices should prove temporary, as this is not a measure of outright monetary stimulus motivated by the apparent weakness in the economy."
At 2:32 p.m. on Tuesday, copper futures increased 0.47 percent, a 0.0175 cent lift to $3.749 per pound.
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