Reuters reported that copper prices jumped more than 2% backed by more confidence in the global economy as central banks moved to stimulate growth which would boost demand for industrial metals. The European Central Bank cut interest rates for the first time in 10 months on Thursday, a day after the US Federal Reserve committed to continue its USD 85 billion monthly bond buying program to bolster growth. In a bid to spur lending, the ECB said it was also technically ready to cut its deposit rate from the current zero percent into negative territory, meaning it would start charging banks for holding their money overnight. Three month copper on the London Metal Exchange was up 2.3% at USD 7,005 per tonne by 0346 GMT. The metal rose as much as 2.7% to a session high of USD 7,038.25 its biggest daily gain since early January. The metal is looking at a modest weekly loss. The benchmark August copper contract on the Shanghai Futures Exchange rose 2.9% to CNY 51,010 per tonne but was on track for a 1.5% drop this week. Copper is leading gains across the base metals complex and is rising in tandem with Asian equities following the ECB's latest move. But analysts and traders are wary on whether the price gains would be sustainable. Mr Sijin Cheng commodities analyst at Barclays Capital said that "It's encouraging that central banks are willing and able to provide the liquidity needed to get out of the slump but by and large people are still worried about the message behind them, that growth is not satisfactory.� A trader in Singapore said that “If copper fails to rise beyond USD 7,500, a level last seen in early April, it could come back down again. I think Asians are trying to keep the market above where they ended in London, but prices are really still vulnerable to more downside."

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