Money

Copper futures at highest in 3 months

(China Daily)
Updated: 2010-08-03 09:41

SINGAPORE - Copper futures in London, Shanghai and New York jumped to the highest level in three months as a rally in equities boosted investor confidence that the global economic recovery is gaining momentum.

Related readings:  China's copper demand may expand 12%, Wanxiang says  Yunnan Copper to raise output  China's largest copper maker posts profit surge in Q1  Zijin Mining required to close copper plant

Copper for three-month delivery on the London Metal Exchange climbed for a fourth day, by as much as 1.8 percent to $7,427 a metric ton, the highest price since April 30. It traded at $7,383 at 4:10 pm in Singapore. "The overall sentiment on copper is rather bullish now, given the recent gains in Asian stocks," Lai Qiwen, an analyst at Guantong Futures Co, said from Beijing on Monday.

November copper on the Shanghai Futures Exchange jumped as much as 3.1 percent to 58,030 yuan ($8,567) a ton, the highest price since May 4, before closing at 57,590 yuan. The contract for September delivery on the Comex in New York gained as much as 1.7 percent to $3.3660 a pound, the highest since May 3. "The continued slowdown in China's manufacturing is being ignored for now," said Zeng Chao, an analyst at Everbright Futures Co.

Asian stocks rose for the sixth time in seven days as companies reported higher earnings or forecasts, shrugging off a report that showed China's manufacturing grew at the slowest pace in 17 months in July. A decline in domestic inventories also "boosts sentiment," said Lai.

China's full-year economic growth may be about 9.5 percent, up from 9.1 percent in 2009, State Council researcher Zhang Liqun said on Sunday. Copper had its best month in a year in July, rising 12 percent, on expectations the Chinese government will ease tightening measures as the economy slows.