BLBG:Copper Rises to 17-Week High on Bullish U.S. Manufacturing, Housing Data
Copper futures rose to a 17-week high as reports showing gains in U.S. manufacturing and homebuilder sentiment bolstered prospects for metal demand.
Factory output rebounded in December, climbing the most in a year as production of business equipment, automobiles and construction materials rose, figures from the Federal Reserve showed today. A National Association of Home Builders/Wells Fargo gauge showed homebuilder confidence rose in January to the highest in more than four years. Stocks rose, driving the Standard & Poor’s 500 Index to a five-month high.
“The U.S. economic data is supporting equities, and copper is moving with that,” Adam Klopfenstein, a market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Any time you see positive news out of the housing sector, that’s bullish for copper.”
Copper futures for March delivery gained 0.6 percent to settle at $3.7525 a pound at 1:19 p.m. on the Comex in New York. Earlier, the price reached $3.7595, the highest for a most- active contract since Sept. 21.
On the London Metal Exchange, copper for delivery in three months climbed 0.5 percent $8,239 a metric ton ($3.74 a pound). Earlier, the price fell as much as 1 percent after the World Bank cut its forecast for global economic growth.
Zinc, lead and tin also advanced in London, while nickel and aluminum fell.
To contact the reporter on this story: Joe Richter in New York at jrichter1@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
