CAPITAL MARKETS

Copper price falls, stocks drop

Red metal fall weighs on equities markets

Staff reporter

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Copper inventories rose and the commodity was also pressured by recent strength in the US dollar, Reuters said.

Diversified miners Rio Tinto (LN:RIO) and Glencore (LN:GLEN) both fell more than 2% yesterday in London, while Teck Resources (US:TECK) lost almost 3% in New York.

Australia copper-focused miner OZ Minerals (AU:OZL) followed suit, closing down more than 3% and diversified major BHP (AU:BHP) lost more than 1.9%. 

Nickel spot prices had tumbled about 4.6% in London and Australian nickel miner Western Areas (AU:WSA) closed more than 5% lower.

Major indices had closed down around the globe, a trend echoed today by the S&P/ASX200 shedding 26.1 points.

Finally, explorer Force Commodities (AU:4CE) provided a highlight in Australian trade, gaining 80% on announcing an agreement to establish a new lithium joint venture in the Democratic Republic of Congo and an oversubscribed capital raising of A$3 million (US$2.3 million).

The raising was conducted at $0.05 per share, the last closing price prior to a trading halt, and on resumption its shares shot up to $0.09.

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