NEW YORK (Dow Jones)--Comex copper futures extended early morning gains on upbeat U.S. economic data Thursday.
The most actively traded contract, for December delivery, was recently up 2%, or 7.45 cents, at $3.8040 per pound on the Comex division of the New York Mercantile Exchange.
The red metal's prices saw a boost from better-than-expected Federal Reserve Bank of Philadelphia data. The bank's November index of general business activity came in at 22.5 from 1.0 in October. It was expected at 4.5. The New orders index was 10.4, from -5.0, while shuipments index rose to 16.8 from 1.4.
"The numbers were very very good and should prove supportive to the copper market," said Sterling Smith, analyst with Country Hedging.
"Copper is a very good indicator for the economy as a whole and is particularly senstivie to broader economic data" because of its wide uses in manufacturing and construction, he added.
Earlier in the session the weaker dollar helped lift copper prices. Dollar-denominated copper futures appear cheaper to investors using foreign currencies when the greenback weakens.
The dollar lost ground to the euro as European Union and International Monetary Fund officials met in Dublin to discuss an assistance package for Ireland.
Irish Central Bank Governor Patrick Honohan said he expected the country to receive a loan worth tens of billions of euros in a rescue package.
The euro has rallied to $1.3641 recently, from $1.3520 late Wednesday.
Copper prices had tumbled amid speculation over Ireland's debt troubles and the threat of a euro-zone member default, with traders concerned economic instability in the region would curb future copper demand.
Bargain hunters are also helping copper prices higher. The red metal has lost around 6.5% from recent highs of $4.0430, with the steepest declines occurring early this week, and some investors view this as an opportunity.
"We are seeing the inevitable post-sell-off bounce set in with much more authority," Edward Meir, senior analyst with MF Global, wrote in a note to clients.
-By Tatyana Shumsky, Dow Jones Newswires; 212-416-3095; tatyana.shumsky@dowjones.com
