BLBG: Copper Advances for Third Day in Asia After U.S. Economic Data
Copper gained for a third day in Asia as better-than-expected economic data from the U.S., the world’s second-largest metals user, eased investors’ concerns the global recession may worsen.
The Institute for Supply Management’s factory index rose to 36.3 last month from 35.8 in February. Readings of less than 50 signal contraction. Economists had forecast a rise to 36. U.S. pending home sales rose 2.1 percent in January from December, according to the National Association of Realtors.
“Better-than-expected data from the housing and manufacturing sectors suggested the rate of recession was declining,” Alex Heath, the head of industrial-metals trading at RBC Capital Markets, wrote in an e-mail.
Copper for three-month delivery gained as much as 1.1 percent to $4,105 a metric ton on the London Metal Exchange, and stood at $4,090 a ton at 9:20 a.m. Singapore time. The contract has advanced by about 33 percent since the start of the year.
Prices may rise to as much as $4,400 a ton on “technical and fundamental factors” should the contract break through a recent high of $4,168, Heath forecast in the note. That figure was the intraday high touched on March 27.
Copper for July delivery on the Shanghai Futures Exchange gained 2.4 percent to 33,790 yuan ($4,944) a ton. May-delivery copper on the Comex division of the New York Mercantile Exchange added 0.5 percent to $1.8585 a pound.
President Barack Obama and his Group of 20 counterparts, responsible for about 85 percent of the world economy, are gathered in London for a summit to push along an agenda aimed at ending the economic slump. They are scheduled to release a statement and hold media conferences at about 3 p.m. London time.
Short-term metal traders may react to “fresh news headlines as they relate to the outcome of the big meeting,” Heath wrote.
Among other LME-traded metals, aluminum rose 0.7 percent to $1,395 a ton, and lead gained 1.2 percent to $1,235 a ton. Tin fell 2.4 percent to $10,195 a ton, while zinc and nickel hadn’t traded as of 9:22 a.m. in Singapore.
