Copper advances to 10-month high
Tuesday, 4 August 2009
LONDON, Aug. 3 (Bloomberg): Copper in London, Shanghai and New York jumped to the highest in 10 months, leading an advance in industrial metals, as the US economy shrank less than expected and a Chinese manufacturing index climbed to a one-year high.
Copper for three-month delivery surged as much as 4 per cent, bringing the gain this year to more than 90 per cent, on optimism that stimulus efforts by governments will revive demand for raw materials. Economists are expecting reports this week to show employers in the US cut jobs at a slower pace in July and that the manufacturing slump is easing, according to surveys.
"Risk appetite is returning to the market in a big way, spurred by very encouraging economic data out of the US," said Zeng Chao, analyst at Everbright Futures Co.
Copper for three-month delivery on the London Metal Exchange surged to $5,946.75 a metric ton, the highest price since Oct. 6, before trading at $5,884.50 at 3:35 p.m. in Singapore. The metal gained for a seventh month in July, advancing 15 per cent to cap the longest winning streak since the eight-month rally ended January 2006.
Copper for September delivery on the Comex division of the New York Mercantile Exchange rose as much as 3.4 per cent to $2.7130 a pound, the highest price for a most-active contract since Oct. 3. November-delivery copper on the Shanghai Futures Exchange gained as much as 6 per cent to 47,880 yuan ($7,009) a ton, the highest price since Oct. 7, and closed at 47,200 yuan.
The CLSA China Purchasing Managers' Index rose to a seasonally adjusted 52.8 from 51.8 in June, CLSA Asia-Pacific Markets said today in an e-mailed statement. That was the fourth monthly expansion. A government-backed manufacturing index released Aug. 1 also showed manufacturing expanded.
US gross domestic product shrank at a better-than- forecast 1 per cent annual pace after a 6.4 per cent drop the prior three months, adding to recent signals indicating an improvement in the global economy. China and the US are the world's two largest consumers of industrial metals.
The most severe recession in at least five decades may be ending and growth in the US may resume at a rate faster than most economists foresee, former Federal Reserve Chairman Alan Greenspan said yesterday.
Copper for three-month delivery surged as much as 4 per cent, bringing the gain this year to more than 90 per cent, on optimism that stimulus efforts by governments will revive demand for raw materials. Economists are expecting reports this week to show employers in the US cut jobs at a slower pace in July and that the manufacturing slump is easing, according to surveys.
"Risk appetite is returning to the market in a big way, spurred by very encouraging economic data out of the US," said Zeng Chao, analyst at Everbright Futures Co.
Copper for three-month delivery on the London Metal Exchange surged to $5,946.75 a metric ton, the highest price since Oct. 6, before trading at $5,884.50 at 3:35 p.m. in Singapore. The metal gained for a seventh month in July, advancing 15 per cent to cap the longest winning streak since the eight-month rally ended January 2006.
Copper for September delivery on the Comex division of the New York Mercantile Exchange rose as much as 3.4 per cent to $2.7130 a pound, the highest price for a most-active contract since Oct. 3. November-delivery copper on the Shanghai Futures Exchange gained as much as 6 per cent to 47,880 yuan ($7,009) a ton, the highest price since Oct. 7, and closed at 47,200 yuan.
The CLSA China Purchasing Managers' Index rose to a seasonally adjusted 52.8 from 51.8 in June, CLSA Asia-Pacific Markets said today in an e-mailed statement. That was the fourth monthly expansion. A government-backed manufacturing index released Aug. 1 also showed manufacturing expanded.
US gross domestic product shrank at a better-than- forecast 1 per cent annual pace after a 6.4 per cent drop the prior three months, adding to recent signals indicating an improvement in the global economy. China and the US are the world's two largest consumers of industrial metals.
The most severe recession in at least five decades may be ending and growth in the US may resume at a rate faster than most economists foresee, former Federal Reserve Chairman Alan Greenspan said yesterday.