SG:London copper rises more than 2pct on EU bond support
Reuters reported that London copper rose more than 2% after European leaders agreed to create a single supervisory body for euro zone banks and allow them to be recapitalized without adding to government debt easing fears over Italy and Spain.
Three month copper on the London Metal Exchange rose 2.1% to a session high of USD 7,538.50 before paring some gains to stand at USD 7,527.75 by 0552 GMT.
European Council chairman Herman Van Rompuy said the aim of the latest initiatives by the region's leaders was to create a supervisory mechanism involving the European Central Bank by the end of this year and to break the vicious circle between banks and sovereign governments.
Despite the relief rally, lingering worries over the global economy, including concerns about a fragile economic recovery in the United States, are still expected to put a cap on gains, keeping copper on track for its worst quarter since the H2 of 2011.
