Base Metals Drift Lower; Copper Off 1.4%

NEW YORK (TheStreet) -- Base metals drifted lower Friday on concerns the sovereign debt crisis contagion could spread across Europe. Moreover, Beijing's measures to curb inflation are likely to push the metals complex lower.

Reports of the European sovereign debt crisis spreading to Spain are raising fears that the bailout fund set up in May isn't large enough to rescue the country, Business Week reports.

Meanwhile, the Shanghai Futures Exchange said it will raise margins and daily price limits across commodities as part of China's measures to curb inflation, BusinessWeek reports. Margins on copper, aluminum, steel wire, gold, and fuel oil will rise to 10%, while for steel-reinforcing bars and zinc it may go up to 12%, and for rubber it may hit 13%, after the markets close on Monday. Daily price move limits for all commodities will widen to 6%, beginning Tuesday.

...

Click to view a price quote on