BASE METALS: Comex Copper Tumbles On Weaker Equities

NEW YORK (Dow Jones) - Copper Losses' s deepened Monday morning, when the stock market fell on oil prices.
The most actively traded contract for May delivery was recently up 3.7%, or 16.75 cents, to $ 4.3180 per pound on the Comex division of the New York Mercantile Exchange.
The front month contract for March delivery fell 3.7%, or 16.65 cents, to $ 4.3055 per pound.
A midday decline in the Dow Jones Industrial Average index dragged copper prices lower on Monday. The index is considered a leading economic indicator, and its removal is widely seen as a sign of negative investor sentiment. The Dow Jones was recently down 0.7%, or 79.4 to 12,090.5, after opening in positive territory.
"The economic outlook is not good at this moment, especially with rising energy prices as they have done so much copper may have more pressure on him," said Bob Harberkorn, senior market strategist at Lind-Waldock.
Copper prices remain under pressure from high crude oil prices that are rising beyond $ 100 a barrel. Civil strife has disrupted oil exports from Libya, a key oil producer. Meanwhile, the underlying tensions in neighboring Middle Eastern nations are keeping oil prices support, as traders worry about the broader supply disruptions.
The crude contract for next month for April delivery was recently up 0.9% to $ 105.31 a barrel on the NYMEX.
Oil prices revived worries of a stronger economic recovery slower and lower world demand for copper. As oil prices rise, consumers are forced to divert more of their income to cover the costs of energy, leaving less money to spend on goods and iPads and automobiles that require copper.
"The energy prices may delay the economic recovery as copper is not making new highs," said George Gero, vice president of RBC Capital Markets Global Futures.

(Source: http://online.wsj.com/article/BT-CO-20110307-709692.html)