SYDNEY, Aug 22 (Reuters): London copper hit its highest in a fortnight on Friday and was eyeing its biggest weekly advance since early July as brightening economic prospects for the United States eclipsed concerns over China's struggling property market.
Risk appetite picked up broadly across equities and commodities after data showed that U.S. home resales raced to a 10-month high in July and the number of Americans filing new claims for jobless benefits fell last week, signalling strength in the economy.
"We've had that string of positive data from the U.S. and we've seen a lot of commodities markets respond to that news. The metals with the particularly good fundamentals have done especially well with the rally over the last week or two," said analyst James Glenn of National Australia Bank in Melbourne.
"There's not much out of China next week, so people will probably focus on the outcome of Jackson's Hole tonight for a bit of a steer on what the Fed sees on the economy. If we get some positive comments, we may see this rally sustain."
Three-month copper on the London Metal Exchange climbed by 0.7 per cent to $7,067 a tonne by 0721 GMT, having earlier hit its loftiest since Aug. 5 at $7,083 a tonne. It was on track for weekly gains of 2.8 per cent, its largest such advance since early July.
The most-traded October copper contract on the Shanghai Futures Exchange climbed 1.3 per cent to 50,760 yuan ($8,242) a tonne.
U.S. business activity also picked up speed, even as growth in China and across Europe slowed this month, surveys showed on Thursday, leaving a mixed picture of global economic growth.
Property worries persist in China, where construction and related demand, such as that for white goods, accounts for the lion's share of consumption in the world's top copper user.
China's Bank of Communications Co Ltd (BoCom) said on Thursday it expects bad loans to rise this year as businesses in major manufacturing regions suffer in a slowing economy. BoCom was the second big lender to make such a forecast this week.
Highlighting expectations of improving copper supply this year, a key production unit at Chilean state copper miner Codelco's Ministro Hales deposit is now operating normally and nearly at full capacity after a start-up delay, the mine's union chief told Reuters on Thursday.
In other metals, LME zinc and LME lead prices were showing signs of stress due to a lack of immediately available metal, with cash prices trading at a premium against benchmark prices this week.
Zinc is largely favoured by investors, due to its dwindling supply profile amid a dearth of new giant mines as current ones dry up. Although lead is typically found in the same mineral deposits, its supply base is more diverse, with about half coming from recycled sources such as batteries.
