Latest News:  
Beijing   Thundershower    26 / 17 ℃  City Forecast

Home>>China Business

Worries about EU's financial health send commodities tumbling

By Michael Bellart  (Global Times)

08:02, June 13, 2012

Monday's commodities rally petered out Tuesday as domestic futures fell across the board as investors took a critical look at the Spanish bank bailout, as well as Europe's other unresolved problems.

The most active copper contract on the Shanghai Futures Exchange (SHFE) fell 1.12 percent to close at 53,740 yuan ($8,435.65) per ton. The contract managed to recover a bit after taking an opening loss of 1.34 percent, tracking copper futures on the London Metal Exchange (LME) overnight.

The three-month LME copper contract rose more than 2 percent in Asian trading Monday, though growing concerns that the latest EU bailout was little more than a band-aid on a mortal wound pared gains for the day. The contract was trading at $7,352 per ton when the domestic markets closed Tuesday, down 0.8 percent for the day.

Other major contracts performed similarly Monday. Nymex West Texas Intermediate crude oil was up more than 2 percent when the domestic markets closed Monday, but ended up falling more than 5 percent overnight. The contract was trading at $81.18 per barrel as of the markets' close Tuesday, down 1.1 percent for the day.

"A rally in commodity markets early on was short-lived after markets re-appraised the $125 billion Spanish banking bailout as a stop gap solution at best," ANZ commodity analyst Natalie Robertson wrote Tuesday.

Eurozone finance ministers agreed Sunday to lend Spain the money to bail out its struggling banks, which remain at the heart of much of the uncertainty in the global financial system.

Robertson pointed out that Spanish and Italian government bond yields spiked overnight, indicating concerns about Europe have reignited.


Leave your comment0 comments

  1. Name


Selections for you

  1. 4th Minorities Art Festival to open in Beijing

  2. Lanzhou MAC holds military transportation professional skill contest

  3. The thousand-year-old Tibetan paper

  4. Blue-green algae gathers in E China lake

Most Popular


  1. China unlikely to undergo local govt debt crisis
  2. Plan to buy Diaoyu Islands a political farce
  3. Beijing Summit features five new aspects
  4. China’s courier industry primed for an overhaul
  5. Why China, US argue over PM2.5 data
  6. People's Daily Commentaries
  7. Nation needs private capital for resource demand
  8. Int'l board could give local stocks a run for money
  9. SCO is strategic choice for members
  10. Conditions not ripe for farm land privatization

What's happening in China

New system solves record number of criminal cases

  1. Foreigners to tell their Beijing stories
  2. Shanghai now costliest city on China's mainland
  3. Expats' donations 'help ease blood shortage
  4. Worries about EU's financial health send tumbling
  5. Agency to push ahead power price reform

China Features

  1. Beijing Summit features five new aspects
  2. A visit to Qiang Nationality in S.W. China
  3. 2012 West Lake Lotus Expo kicks off in Hangzhou
  4. Innocent photography: Sleeping baby
  5. People's Daily Online seeks English editor

PD Online Data

  1. Spring Festival
  2. Chinese ethnic odyssey
  3. Yangge in Shaanxi
  4. Gaoqiao in Northern China
  5. The drum dance in Ansai