Copper Climbs on Higher EU Auto Sales, Grasberg Disruption

Copper prices rose after European auto sales surprised the market with their first increase in 20 months, and as one of the world's largest copper mines remains shut following a fatal accident.

Copper prices advanced on the news as copper electrical wires, heating elements and tubing is widely used in automotive production, and the brighter data are considered a signal of stronger future demand for the industrial metal.

Copper prices are also drawing support from the work suspension following a fatal accident at Freeport McMoRan Copper & Gold Inc.'s (FCX) Grasberg mine in Indonesia. The company halted output at the world's third-largest open pit copper mine to focus on the rescue of 25 workers trapped after an underground tunnel caved in on Tuesday.

Copper is widely used in everyday goods like cell phones, laptops and cars, and demand for these products tends to increase when consumers have more confidence in the economy.

http://www.4-traders.com/FREEPORT-MCMORAN-COPPER-12574/news/Freeport-McMoRan-Copper-Gold-Inc-Copper-Climbs-on-Higher-EU-Auto-Sales-Grasberg-Disruption-16869729/?countview=0

UK car sales boom

Car sales jumped by almost 15% in April compared with the same month last year and are 9% higher in the first four months of 2013. Sales to individuals drove the numbers higher, with private sales up 32% compared with April last year.

Britons have been attracted by bargain deals on new cars, as well as attractive financing packages. Some motorists have also been prompted to buy more fuel efficient cars because of high petrol prices.

The health of the UK car market stands in sharp contrast to Europe, where sales slumped by more than 10% in March. Analysts were particularly concerned by a 17% decline in new car sales in Germany.

http://www.guardian.co.uk/business/2013/may/07/uk-car-sales-boom

China's Falling Inventories Hit Hopes for Economic Rebound

Fresh signs of falling inventories in China's factories are denting hopes that economic growth will rebound in the second quarter.

Data released in early May as well as comments from industry officials suggest companies are not rebuilding their stocks as they expect demand to fall. That indicates the economic juggernaut is unlikely to bounce in the near term, after its gross domestic product growth slowed to 7.7% on year in the first quarter from the preceding quarter's 7.9%.

In the details of China's official Purchasing Managers' Index -- a key gauge of manufacturing activity -- the sub-index indicating stocks of finished goods fell to 47.7 in April from 50.2 the previous month, while the sub-index measuring raw material stocks was at 47.5, unchanged from March. Both are below the 50-point level that separates expansion from contraction.

But while the overall view on the inventory front seems gloomy, there are spots of optimism.
Within the steel sector, Baosteel - which focuses on high-end products where demand is stronger -- said it had bulked up on raw materials. "Demand from autos, the ultra-high voltage grid, energy pipe network, and urban rail will remain strong this year," general manager Ma Guoqiang, told a news briefing on April 26.
An executive with Anhui Conch Cement Co., one of China's largest cement makers, said that restocking is likely in coming months. "The last round of destocking was basically done in April and the downstream demand is expected to rise as the peak season for construction is coming," she said, adding that cement prices were likely to rebound slightly.

http://www.4-traders.com/news/China-s-Falling-Inventories-Hit-Hopes-for-Economic-Rebound--16830421/

Real estate sales Italy plunged 26 percent last year

Real estate sales in Italy plunged 26 percent last year, according to Finance Ministry data. Residential transactions amounted to 88.1 billion euros, Scenari Immobiliari’s research showed.

House prices fell 4.6 percent in the last quarter of 2012 from a year earlier. They’ve dropped 12 percent in real terms from the 2008 peak, reaching levels last seen in mid-2004, according to Bloomberg calculations. Values are likely to fall another 5 percent this year, according to the real estate research unit of the Bologna-based Nomisma institute.

Foreign investment in Italian holiday properties is rising as Germans, Britons and Russians take advantage of a market where locals are struggling to purchase even a first home. Residential sales in the country dropped almost 26 percent last year amid a plunge in mortgage lending, almost two years of recession, and uncertainty surrounding a new tax on primary residences.

Second-home sales to buyers from abroad rose 14 percent last year, with non-Italians spending 2.1 billion euros ($2.8 billion), according to research institute Scenari Immobiliari. Germans, the biggest buyers since 2009, accounted for almost 40 percent of the transactions by foreigners, followed by the British at 18 percent and Russians with 13 percent.

http://www.bloomberg.com/news/2013-05-06/germans-splurge-on-italian-homes-locals-can-t-afford.html

Eurozone recession expected to deepen

"Reduced business activity, possible spillovers from the restructuring of the banking sector to professional business services and the hiring freeze in the public sector are expected to push the unemployment rate higher in 2013 and more so in 2014," the commission said in its report, referring to the consequences of a bailout that included a raid on savers' deposits.

The spring forecasts underlined the stark contrasts between eurozone member states, with France becoming decoupled from Germany as the economic centre of the single currency bloc. The commission sees the German economy recovering gradually on the back of improving domestic demand, helped by a "robust labour market and more dynamic wage growth". GDP in France, however, is forecast to stagnate this year amid modest exports.

http://www.guardian.co.uk/business/2013/may/03/eurozone-recession-deeper-unemployment

Apple Inc.’s stock is finally beginning to rally

Goldman Sachs Group, Inc.(NYSE:GS) said their IT hardware group outperformed the S&P 500 this week, led by Apple Inc. (NASDAQ:AAPL), which advanced 9.1 percent. They’ve rated Apple as a buy. In their view, the stock rally is simply a delayed reaction to the company’s $100 billion capital allocation plan. They also believe this week’s $17 billion bond deal made that reaction even more intense.

In addition, they said investors may be reacting to Apple’s adjusted guidance. While initially adjusting guidance usually causes a negative reaction, the idea here is that Apple Inc. (NASDAQ:AAPL) will be less likely to miss expectations. As a result, the risk involved in investing in the stock before the iPhone and iPad refresh may be mitigated.

Another near-term catalyst they see is Apple’s annual Worldwide Developer’s Conference, which is set for June 10 – 14 in San Francisco. The company is expected to unveil some major iOS updates, so that has the potential to renew investors’ outlook on Apple’s innovation abilities.

http://www.valuewalk.com/2013/05/apple-inc-aapl-rated-buy-hewlett-packard-company-hpq-rated-sell/