BLBG:Copper Set for First Weekly Gain in Three as Demand May Improve
Copper advanced for a second day, heading for the first weekly increase in three, on speculation that moves by central banks around the world to stimulate growth will boost demand for industrial metals.
Copper for delivery in three months climbed as much as 0.5 percent to $8,342 a metric ton on the London Metal Exchange and traded at $8,314 by 3:44 p.m. Seoul time. The price is up 1.3 percent this week, bringing this year’s gain to 9.4 percent. The contract for December delivery was little changed at $3.7905 a pound on the Comex in New York.
The European Central Bank and the Bank of England left their benchmark interest rates at record lows yesterday. ECB President Mario Draghi said the central bank is ready to start buying government bonds of indebted euro nations as soon as the necessary conditions are fulfilled. The Bank of Japan held off from more easing after adding to stimulus last month, preserving its policy firepower despite increased political pressure and signs of an economic contraction.
“Draghi’s comments confirmed their pledge once again,” said Hwang Il Doo, a senior trader at Korea Exchange Bank Futures Co. in Seoul. “Investors are now moving their focus to U.S. jobs data to try to get any cue for further upside.”
Data today may show the U.S. economy created 115,000 jobs last month, up from 96,000 in August, while the unemployment rate increased to 8.2 percent from 8.1 percent. The Federal Reserve in September pledged to buy mortgage-backed securities until the U.S. labor market recovers.
Pan Pacific Copper Co., Japan’s largest producer, said it plans to increase output by 12.4 percent to 268,300 tons in the second half of the year ending March 31 from a year earlier.
On the LME, zinc climbed, while aluminum, tin and nickel were little changed. Lead dropped. Markets in China are closed this week for the National Day holiday.
To contact the reporter on this story: Sungwoo Park in Seoul at spark47@bloomberg.net
To contact the editor responsible for this story: James Poole at jpoole4@bloomberg.net
