BLBG:Copper Advances As Germany’s Economic Growth Exceeds Estimates
Copper rose in New York after two sessions of declines on stronger-than-estimated economic growth in Germany that bolstered the demand outlook in the world’s third-biggest consumer of the metal.
The German economy, Europe’s largest, expanded 0.3 percent in the second quarter from the prior period, Federal Statistics Office figures showed, more than the 0.2 percent median estimate in a Bloomberg News survey of economists. France unexpectedly avoided a contraction. The euro advanced for a second day against the dollar and European shares climbed.
“Copper is gaining alongside the euro,” said Andrey Kryuchenkov, a London-based analyst at VTB Capital. “Base metals are still trading with the broader equity market and against the dollar.”
Copper for December delivery rose 0.4 percent to $3.3790 a pound by 6:45 a.m. on the Comex in New York. Copper for three- month delivery climbed 0.6 percent to $7,436.25 a metric ton on the London Metal Exchange.
“The slightly positive news out of Germany and France this morning has helped the market find some footing,” RBC Capital Markets Ltd. said in an e-mailed report.
Figures may show sales at U.S. retailers rose in July for the first time in four months and prices paid by producers in the country increased last month, according to Bloomberg surveys of economists.
Copper stockpiles monitored by the LME slid 0.7 percent to 237,500 tons, the lowest level since June 11, daily exchange figures showed. Orders to remove copper from warehouses, or canceled warrants, fell 0.7 percent to 35,225 tons.
Nickel for three-month delivery on the LME added 1.1 percent to $15,542 a ton. Canceled warrants jumped 57 percent to 15,630 tons, the highest level since at least October 1997, on bookings in Johor, Malaysia.
Zinc, lead and tin advanced in London. Aluminum was little changed.
To contact the reporter on this story: Maria Kolesnikova in London at mkolesnikova@bloomberg.net
To contact the editor responsible for this story: Claudia Carpenter at ccarpenter2@bloomberg.net