LONDON, Nov 16 (Reuters): Copper prices rose on Friday as better than expected U.S. and European economic data calmed jitters about a slowdown in global growth, sparking some bearish speculators to buy back positions.
Three-month copper on the London Metal Exchange (LME) closed 0.8 per cent higher at $6,705 a tonne, rebounding from a low of $6,601. Copper fell 0.2 per cent this week, its first weekly drop in a month.
"The turnaround started after the U.S. numbers came out; the market was a bit short for the day," said a metals trader in London. US data showed strong U.S. retail sales in October and a rise in consumer sentiment to a seven-year high this month, which could help keep the economy growing at a brisk pace.
In Europe, the euro zone economy grew more strongly than expected in the third quarter as France beat market forecasts and Germany narrowly avoided a recession.
Capping gains in metals was a firmer dollar, although it came off its highs. A strong dollar makes commodities priced in the greenback more expensive for holders of other currencies.
Copper dipped in the morning on concerns about the outlook for demand from China following weak economic data from the world's top metals consumer.
"Credit conditions in China have tightened. And with the expansion in smelting and refining capacity, we expect there is more than enough copper around for the next two to three years," said Nic Brown, head of commodities research at Natixis. The amount of new loans issued by Chinese banks fell by more than one third in October.
In another sign of weakening growth, China's factory growth dipped in October and investment growth hit a near 13-year low.
Aluminium and tin bucked the stronger trend, failing to move into positive territory. Aluminium closed down 1 per cent at $2,022 and shed 1.6 per cent this week, the deepest weekly loss since early October.
Copper gains after strong US data, aluminium down
FE Team | Published: November 17, 2014 00:00:00 | Updated: November 16, 2014 22:05:19
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