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LME basic metals is expected to open lower in Asian market, dragged down by a stronger dollar.

Date:2012-05-09 14:03

 According to the news of May 9 from Singapore, LME basic metals is expected to open lower on Wednesday in Asia market due to fear of weighing on the Euro because of debt problems in Greece and Europe. As dollar-denominated commodities become more and more, the dollar's rise makes dollar-denominated commodities more valuable for non-dollar holders. for of other currencies are becoming more expensive. EURUSD is currently 1.2996 and late is 1.3005 on Tuesday in New York.

 The copper of New York Mercantile Exchange (COMEX) in July closed at $ 3.6775 per pound, dropping slightly more than 2.5% compared with Monday's settlement price, which was recorded as the biggest one-day drop on April 4.

 On Tuesday, late in morning, COMEX copper hit a session low of $ 3.6585, which is the minimum since April 24. Analysts are concerned if they seek for support at the level of only 3 cents lower than the session low.

 LME On Tuesday, LME three-month copper closed at $ 8,095 per ton, about 1% decrease compared with late Friday. On Monday, London market falls on the holiday of England Bank. Nickel got the largest decrease, down 1.1% to U.S. $ 17,350 per ton.

 Kingsview Financial Matt Zeman, head of trading ministry, said: "The market does not like to see this uncertainty, so once there is doubt, they will sell." Dan Smith, analyst of Standard Chartered Bank said: "in short term, prices will continue to be influenced by macro news.” He said that merchandise trade and industrial production data to be announced by China on Friday will be closely watched in order to look for signs of demand.