BS: Copper Prices Gain Most in a Week as U.S. Jobless Rate Declines
By Anna Stablum and Millie Munshi
July 2 (Bloomberg) -- Copper prices rose the most in a week after a U.S. report showed the jobless rate declined, easing economic concerns.
Unemployment dropped to 9.5 percent in June from 9.7 percent in May, the Labor Department said today. Economists surveyed by Bloomberg forecast the rate would rise to 9.8 percent, the median of 81 estimates. Copper fell 17 percent in the second quarter on concern that the global recovery is slowing.
“A lot of the economic news has been pretty bad lately, so we’re getting some support with the decent jobs numbers,” said Donald Selkin, the chief market strategist at National Securities Corp. in New York.
Copper futures for September delivery rose 3.05 cents, or 1.1 percent, to $2.9075 a pound at 11:50 a.m. on the Comex in New York. A close at that price would be the biggest gain for a most-active contract since June 25.
Gains were limited because some traders viewed the smaller- than-forecast gain in private payrolls as “another negative,” Selkin said. Employment at companies rose by 83,000, less than 110,000 projected by economists. The U.S. is the world’s second- largest copper buyer after China.
The “report was slightly disappointing, but the sharp fall in the unemployment rate will help consumer sentiment” said David Thurtell, an analyst at Citigroup Inc. in London.
Before today, copper prices tumbled 14 percent this year. Europe’s sovereign-debt crisis, U.S. job losses and China’s moves to cool its expansion have spurred concern that global growth will slow and metal demand will decline.
Copper for delivery in three months rose 1.3 percent to $6,417.75 a metric ton ($2.91 a pound) on the London Metal Exchange.
Aluminum, zinc, lead and tin prices also rose. Nickel fell.
--Editors: Patrick McKiernan, Daniel Enoch
To contact the reporters on the story: Anna Stablum in London at astablum@bloomberg.net; Millie Munshi in New York at mmunshi@bloomberg.net
To contact the editor responsible for this story: Patrick McKiernan in New York at pmckiernan@bloomberg.net
