BLBG: Copper Gains in London, Buoyed by Lower Dollar, Higher Equities
By Claudia Carpenter
Nov. 14 (Bloomberg) -- Copper rose the most in four days in London, tracking a rebound in equities and as a weaker dollar increased the metal's attraction as an alternative investment.
Copper prices in China, the world's largest buyer, advanced the most allowed by the Shanghai Futures Exchange. The U.S. Dollar Index, which measures the currency's performance against six counterparts, fell for a second day. Stock markets in Europe and Asia advanced.
``Because the market is turning into a weaker period of demand, you tend to see exchange rates and equities have a stronger impact at the moment,'' said Michael Widmer, an analyst at BNP Paribas in London. ``A rise in prices one day doesn't necessarily mean the economy is back on track.''
Copper for delivery in three months rose $115, or 3.1 percent, to $3,785 a metric ton as of 12:14 p.m. in London, adding to yesterday's 1.4 percent gain. Prices are up $30, or 0.8 percent, this week after falling 8.4 percent last week.
Copper was expected to advance today after prices rebounded from a three-year low yesterday, Barclays Capital technical analysts said in a report yesterday.
``We're looking for a corrective bounce rather than a sustained recovery,'' said Barclays analyst Phil Roberts in London. ``We might get a bounce toward $4,000 but we're not really expecting it to go beyond $4,115'' in the next week.
Among other metals for delivery in three months, aluminum climbed $8 to $1,945 a ton. Lead rose $21 to $1,360 a ton, zinc fell $2.50 to $1,202.50 a ton and tin increased $350 to $14,050 a ton. Nickel jumped $50 to $11,500 a ton.
To contact the reporter on this story: Claudia Carpenter in London at ccarpenter2@bloomberg.net or ccarpenter2@bloomberg.net