Investing.com - Copper futures were higher during European morning trade on Wednesday, holding on to gains after Italy saw borrowing costs rise to the highest level since December at a well-received debt auction earlier in the day.
Copper prices were supported as investors hung on to hopes for action by global central banks and other authorities to stimulate growth and boost the world economy.
But gains were limited amid mounting concerns over Spain’s deteriorating fiscal situation, as well as jitters ahead of weekend elections in Greece.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.364 a pound during European morning trade, gaining 0.85%.
It earlier rose by as much as 1% to trade at a session high of USD3.370 a pound.
Copper held on to gains after Italy’s Treasury sold the full targeted amount of EUR6.5 billion worth of 12-month government bonds earlier in the day.
Yields rose to 3.972%, the highest since December and up sharply from 2.340% at a similar auction last month, amid growing fears the country will be the next euro zone member to require a bailout.
Gains were limited as concerns that a bailout of as much as EUR100 billion for Spain’s banks will add to the country’s debt burden and make it more difficult for Madrid to access credit markets continued to weigh on investor sentiment.
The yield on Spanish 10-year bonds eased back to 6.66% earlier, after surging to a euro-era high of 6.82% on Tuesday, coming close to the 7% level which is viewed as unsustainable in the long run after it prompted bailouts in Greece, Ireland and Portugal.
Spain is the fourth euro-zone nation to seek a rescue, after Greece, Portugal and Ireland. A financial crisis has gripped the country since 2008, when a real estate bust caused big losses for many banks.
Concerns about Spain’s banks have grown since Bankia, the country’s fourth-largest lender, said last month it needed EUR19 billion in state aid to shore itself up against bad loans.
Investors were also jittery ahead of Sunday’s general election in Greece, which could determine the country’s future in the euro zone.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
Copper prices have been on a rapid decline since the start of May, amid growing fears over an escalating debt crisis in the euro zone and a deeper-than-expected slowdown in China.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of debt crisis in the euro zone.
Elsewhere on the Comex, gold for August delivery was flat to trade at USD1,614.15 a troy ounce, while silver for July delivery fell 0.2% to trade at USD28.89 a troy ounce.
Copper prices were supported as investors hung on to hopes for action by global central banks and other authorities to stimulate growth and boost the world economy.
But gains were limited amid mounting concerns over Spain’s deteriorating fiscal situation, as well as jitters ahead of weekend elections in Greece.
On the Comex division of the New York Mercantile Exchange, copper futures for July delivery traded at USD3.364 a pound during European morning trade, gaining 0.85%.
It earlier rose by as much as 1% to trade at a session high of USD3.370 a pound.
Copper held on to gains after Italy’s Treasury sold the full targeted amount of EUR6.5 billion worth of 12-month government bonds earlier in the day.
Yields rose to 3.972%, the highest since December and up sharply from 2.340% at a similar auction last month, amid growing fears the country will be the next euro zone member to require a bailout.
Gains were limited as concerns that a bailout of as much as EUR100 billion for Spain’s banks will add to the country’s debt burden and make it more difficult for Madrid to access credit markets continued to weigh on investor sentiment.
The yield on Spanish 10-year bonds eased back to 6.66% earlier, after surging to a euro-era high of 6.82% on Tuesday, coming close to the 7% level which is viewed as unsustainable in the long run after it prompted bailouts in Greece, Ireland and Portugal.
Spain is the fourth euro-zone nation to seek a rescue, after Greece, Portugal and Ireland. A financial crisis has gripped the country since 2008, when a real estate bust caused big losses for many banks.
Concerns about Spain’s banks have grown since Bankia, the country’s fourth-largest lender, said last month it needed EUR19 billion in state aid to shore itself up against bad loans.
Investors were also jittery ahead of Sunday’s general election in Greece, which could determine the country’s future in the euro zone.
Europe as a region is second in global demand for the industrial metal. Prices have tracked investor sentiment toward the euro zone’s debt crisis in recent months.
Copper prices have been on a rapid decline since the start of May, amid growing fears over an escalating debt crisis in the euro zone and a deeper-than-expected slowdown in China.
A deeper slowdown in China, the world’s second biggest economy, would impair a global expansion that is already faltering because of debt crisis in the euro zone.
Elsewhere on the Comex, gold for August delivery was flat to trade at USD1,614.15 a troy ounce, while silver for July delivery fell 0.2% to trade at USD28.89 a troy ounce.