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Shanghai copper drops as Libya fears unnerve markets

Wednesday, Feb 23, 2011
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Shanghai copper opened down 1.7 percent on Wednesday, following London copper's sharp fall in the previous session, as a violent revolt in Libya turned  nervous investors away from riskier markets such as industrial metals.


* Three-month copper on the London Metal Exchange  edged down 0.3 percent to $9,550 a tonne by 0100 GMT, after hitting $9,510, its lowest since the end of January.


* Shanghai's most-active copper futures contract tumbled 1.7 percent at 72,300 yuan ($10,988) a tonne.


* The turmoil in Libya sent oil prices to 30-month highs, and stoked worries about global growth, sending industrial metals and grains tumbling.


 * In Libya, a defiant Muammar Gaddafi said he was ready to die "a martyr", vowing to crush a growing revolt which has seen eastern regions of his country break free of his 41-year rule and brought deadly unrest to the capital. 


* The rally in commodities has further to go as investors look to find a home for mountains of cash that have piled up as a result of quantitative easing, the manager of the Sunares Sustainable Natural Resources fund said. 


* Shanghai zinc fell 2.5 percent to 19,245 yuan, after suffering a daily fall of more than three percent in the previous session.

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