BLBG:Copper in London Gains for Third Day After U.S., German Data Top Estimates
Copper gained for a third day as economic data from the U.S. and Germany yesterday beat forecasts, and slowing China growth bolstered the case for policy easing, improving the outlook for metal demand.
Three-month delivery copper on the London Metal Exchange swung between gains and losses of 0.5 percent and traded 0.4 percent higher at $8,236 a metric ton by 12:24 p.m. Shanghai time. The contract rose to $8,262 yesterday, the highest level since Oct. 28. Copper for March-delivery on the Comex in New York climbed 0.5 percent to $3.7490 a pound.
“Markets had factored in a slowdown in China and possible defaults in Europe,” Zhang Tianfeng, an analyst at Dongxing Futures Co., said by phone from Shanghai. “Going forward, we’re more likely to see positive developments, such an easing in China, or further improvement in the U.S. economy.”
China’s economy expanded at 8.9 percent in the last three months of 2011, the slowest pace in 10 quarters as Europe’s debt crisis curbed export demand and the property market weakened, sustaining pressure on Premier Wen Jiabao to ease monetary policy. A report yesterday showed manufacturing in the New York region expanded in January at the fastest pace in nine months, while German investor confidence advanced to the most on record in January.
The World Bank cut its global growth forecast by the most in three years, saying that a recession in the euro region threatens to exacerbate a slowdown in emerging markets. The Washington-based institution said the world economy this year will rise 2.5 percent, less than a June estimate of 3.6 percent.
Copper for April-delivery on the Shanghai Futures Exchange closed the morning session 0.4 percent lower at 59,710 yuan ($9,460) a ton.
Aluminum fell 0.2 percent to $2,222.75 a ton in London. Zinc dropped 0.1 percent to $1,999.25 a ton, lead declined 0.2 percent to $2,103 a ton, and nickel rose 0.4 percent to $19,600 a ton. Tin hadn’t been traded.
To contact Bloomberg News staff for this story: Helen Sun in Shanghai at hsun30@bloomberg.net
To contact the editor responsible for this story: Richard Dobson at rdobson4@bloomberg.net
