June 11 (Bloomberg) -- Copper may fall in London, paring a weekly advance, on speculation China’s accelerating inflation could prompt further government measures to restrain growth that fueled demand for industrial metals.
Market News:
-- China’s inflation accelerated in May to the quickest pace in 19 months, highlighting overheating risks in the fastest-growing major economy.
-- Billionaire investor George Soros said “we have just entered Act II” of the crisis as Europe’s fiscal woes worsen and governments are pressured to curb budget deficits that may push the global economy back into recession.
-- The world’s biggest expected swings in foreign-exchange markets and the euro’s record depreciation are prompting Asian exporters to seek currency controls.
-- Asian stocks advanced for a second straight day as investor appetite for riskier assets rose on speculation Europe’s debt crisis won’t derail global growth.
-- Treasury Secretary Timothy F. Geithner said China’s exchange- rate policy prevents a balanced global recovery and urged a stronger yuan to help contain inflation in the world’s third- largest economy.
-- The risk of owning Europe’s corporate bonds is the highest on record relative to U.S. company debt as investors lose confidence lawmakers and central bankers can tame the region’s worsening fiscal crisis.
-- Crude oil fell, snapping three days of gains, on concern the economic recovery in China may slow and curb demand from the world’s second-largest energy consumer.
Metals News:
-- BHP Billiton Ltd., the world’s largest mining company, may use last month’s 16 percent decline in iron-ore prices to persuade steelmaking clients to pay cash instead of contract- based prices from the next quarter.
-- Xstrata Plc, which halted investment in A$6.6 billion ($5.6 billion) of Australian mining projects after the government proposed a new tax, said “tinkering” with the levy won’t be sufficient to prevent damage to the industry.
-- Metallica Minerals Ltd., studying a A$700 million nickel project in Australia’s Queensland state, may scrap the mine because of the proposed resource super profits tax.
-- Nickel may drop to $13,600 a metric ton, implying a 29 percent slide from current prices, after falling through a trend line, according to technical analysis by independent analyst Jim Stellakis.
-- The United Steelworkers said union members may vote June 24 on a labor contract proposed by Alcoa Inc., the largest U.S. aluminum maker.
