BLBG:Copper Rises for First Day in Three as Base Metals Climb
Copper gained for the first time in three days as the lowest price in two months prompted buying before China’s October economic data and leadership change and the U.S. election. Aluminum, nickel and tin also advanced.
Metal for delivery in three months climbed as much as 0.8 percent to $7,707.50 a metric ton on the London Metal Exchange, before trading at $7,701.25 at 2:52 p.m. Shanghai time. It touched $7,596 yesterday, the lowest since Sept. 5.
“There may be a bit of short-covering following losses in the last couple of days,” Li Peng, an analyst at Guotai Junan Futures Co., said by phone from Shanghai. “It is now risk-off mode ahead of the key political events in both China and the U.S., as well as China’s economic data.”
The Communist Party will start on Nov. 8 its 18th Congress as delegates meet to decide on leadership changes that will probably see Xi Jinping replace Hu Jintao as general secretary of the party. U.S. voters will decide today whether to return Barack Obama as president or elect his challenger Mitt Romney.
China’s industrial production growth probably accelerated last month, while consumer prices gains may be steady, according to economist estimates before the release of data on Nov. 9.
Futures for delivery in February climbed 0.5 percent to close at 56,060 yuan ($8,977) a ton on the Shanghai Futures Exchange. Copper for delivery in December added 0.7 percent to $3.4935 a pound on the Comex in New York.
Copper stockpiles monitored by the LME fell 0.7 percent to 241,325 tons on withdrawals from New Orleans, daily exchange figures showed yesterday.
To contact Bloomberg News staff for this story: Helen Sun in Shanghai at hsun30@bloomberg.net; Jae Hur in Tokyo at jhur1@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
