June 14, 2012 / 1:50 AM / 6 years ago

METALS-Copper falls on weak U.S. data, euro zone worries

SHANGHAI, June 14 (Reuters) - Copper prices fell on Thursday
as weak retail sales data from the United States stirred worries
over slowing growth in the world's largest economy.	
    Investors are also cautious ahead of an Italian debt auction
later in the session and a Greek election on the weekend.
Negative outcomes to either event would compound market concerns
over Spain's finances and the euro zone's debt problems,
possibly driving a stampede out of riskier assets.  	
        	
    FUNDAMENTALS	
    * Three-month copper on the London Metal Exchange 
fell 0.2 percent to $7,375 a tonne by 0113 GMT. That put it on
track to post three consecutive sessions of losses, after
Monday's 1.7 percent jump on a short-lived rally after a bailout
package for Spain's banks was announced.	
    * The most-active September copper contract on the Shanghai
Futures Exchange lost 0.5 percent to 53,810 yuan
($8,400) a tonne, catching up with London's previous losses
after rising 0.6 percent on Wednesday.	
    * U.S. retail sales fell for a second straight month in May
and wholesale prices dropped by the most in three years, adding
to a raft of other recent signals, including reports on
employment and manufacturing, that have pointed to a slowdown in
economic recovery. 	
    * The sluggishness of the U.S. economy was also highlighted
by a Reuters poll of economists which showed the world's largest
economy growing more slowly and creating fewer jobs than thought
only a month ago. 	
    * In the euro zone, credit ratings agency Moody's Investors
Service cut its rating on Spanish government debt on Wednesday
by three notches to Baa3 from A3, saying the newly approved euro
zone plan to help Spain's banks would increase the country's
debt burden. 	
    * Adding to worries over Spain, more economists polled by
Reuters recently said they thought Spain would seek an
international sovereign bailout as compared to an earlier survey
in April. 	
    * The poll results, which showed a slim majority of
economists believing this, came just days after Madrid sought up
to 100 billion euros to rescue its banks. 	
    * Technocrat Prime Minister Mario Monti appealed to Italy's
politicians on Wednesday to back his tough economic medicine to
avoid Rome becoming the next victim of the euro debt crisis.
Italy will hold a debt sale of up to 4.5 billion euros ($5.66
billion) later in the session.    	
    * For the top stories in metals and other news, click   	
, or 	
                     	
    MARKET NEWS	
    * Global stocks and the dollar fell on Wednesday on the
concerns over Europe's long-simmering debt crisis. 	
    * The euro clung on to most of its overnight gains early in
Asia on Thursday, while commodity currencies such as the
Australian dollar came under renewed pressure following a
negative close on Wall Street. 	
        	
    DATA/EVENTS (GMT)	
0430  Japan     Industrial output rev   Apr        	
0900  Euro Zone Inflation, final yy     May       	
1230  U.S.      CPI                     May        	
1230  U.S.      Jobless claims          Weekly      	
1230  U.S.      Current account         Q1   	
    	
                                                               
  Base metals prices at 0113 GMT
  Metal              Last       Change   Pct Move YTD pct chg
  LME Cu            7375.00    -15.00     -0.20     -2.96
  SHFE CU FUT SEP2    53810      -260     -0.48     -3.27
  LME Alum          1966.00      2.00     +0.10     -2.67
  SHFE AL FUT SEP2    15860       -40     -0.25      0.13
  HG COPPER JUL2     332.85     -1.10     -0.33     -3.13
  LME Zinc          1882.25      0.25     +0.01      2.02
  SHFE ZN FUT SEP2    14770       -50     -0.34     -0.17
  LME Nickel       17040.00     60.00     +0.35     -8.93
  LME Lead          1898.00     -1.00     -0.05     -6.73
  SHFE PB FUT            0    -14980   -100.00   -100.00
  LME Tin          19450.00      0.00     +0.00      1.30
  LME/Shanghai arb     887
 
   Shanghai and COMEX contracts show most active months
   ^ LME 3-m copper in yuan, including 17 pct VAT, minus SHFE 
 third month
                                                               
 ($1 = 0.7953 euros)	
($1 = 6.3691 Chinese yuan)	
	
 (Reporting by Carrie Ho; Editing by Joseph Radford)
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