Copper rose for the first day in four in London on reduced concern about yesterday’s exchange of artillery fire between North and South Korea. Prices dropped as much as 2.9 percent, the most in a week, in London yesterday. The United Nations commander proposed holding talks with North Korea’s military. Prices also gained today before the release of U.S. reports that may show higher machinery orders and stronger demand for new homes. “There was an awful lot made of the events in Korea yesterday, but overnight the Korean markets appear largely unconcerned,” said Nic Brown, an analyst at Natixis in London. “I would take that as a positive for commodities.” Copper for delivery in three months climbed $45, or 0.6 percent, to $8,185 a metric ton at 10:201 a.m. on the London Metal Exchange. Copper for delivery in March added 0.3 percent to $3.722 a pound on the Comex in New York. All of the six main metals traded on the LME gained, led by zinc. “It looks like there is some bargain-hunting going on in the copper market,” said Daniel Brebner, an analyst at Deutsche Bank AG in London. Copper also fell in the past two sessions as the dollar gained amid concern about Europe’s sovereign-debt crisis. Ireland will today lay out a four-year deficit-cutting program as the government races to end aid talks with the International Monetary Fund and the European Union. The metal also slid on concern demand may wane as China moves to limit inflation. Under $8,000? “Prices could fall below $8,000 over the near term, given the potential for further risk in peripheral Europe and the strong likelihood that China moves again to raise reserve requirements or interest rates before the end of the year,” Brebner said. South Korea raised its military surveillance alert to the second-highest level after North Korea fired shells into its military base on Yeonpyeong Island, Defense Minister Kim Tae Young told lawmakers in Seoul. Figures due at 1:30 p.m. London time may show that U.S. bookings for durable goods excluding cars and aircraft climbed 0.6 percent in October, according to economists surveyed by Bloomberg News. Demand for new homes gained 1.6 percent to a 312,000 annual pace, economists forecast before a report scheduled for release 90 minutes later. German business confidence unexpectedly rose to a record in November as domestic spending increased, bolstering the economic outlook. The Munich-based Ifo institute said its business climate index rose to 109.3, the highest level since records for a reunified Germany began in 1991. Economists predicted a decline to 107.5. Pay Discussions Anglo American Plc and Xstrata Plc’s Collahuasi venture said it will ignore union calls to resume wage talks and continue negotiating directly with workers in a bid to end a strike at the world’s fourth-biggest copper mine. The stoppage at the Chilean mine is in its third week. Copper stockpiles tracked by the LME slid for a 14th day to 357,125 tons today, the lowest level since Oct. 19, 2009, daily exchange figures showed. Orders to draw copper from LME inventories, or canceled warrants, dropped 1.9 percent to 31,725 tons. Tin for three-month delivery on the LME rose 0.5 percent to $24,025 a ton. Prices reached a record $27,500 on Nov. 9. The metal has jumped 42 percent this year, leading advances on the exchange, after production was disrupted in Indonesia and the Democratic Republic of Congo. Aluminum rose 0.4 percent to $2,264 a ton and nickel climbed 0.6 percent to $21,735 a ton. Lead gained 0.5 percent to $2,197 a ton and zinc added 0.8 percent to $2,102 a ton. To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.

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