Copper Gains to 12-Week High in New York
Copper rose for a second day in New York and London to a 12-week high as the dollar weakened, equities climbed and orders to draw metal from stockpiles increased.
The U.S. Dollar Index, a six-currency gauge of the greenbacks strength, dropped as much as 0.8 percent. European shares gained, and futures indicated that U.S. equity indexes will advance when New York trading opens. Canceled warrants, as the orders are known, rose the most in a week.
The markets are ready for a rally and are looking for reasons, said Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt. Today the weaker dollar and friendly equity markets are enough to push metals higher.
Copper for September delivery gained 0.8 percent to $3.272 a pound at 7:51 a.m. on the Comex in New York. The contract climbed as high as $3.2895, the highest intraday price since May 4. Copper for delivery in three months rose 0.8 percent to $7,230 a metric ton on the London Metal Exchange.
A weaker dollar makes metals priced in the currency cheaper in terms of other monies. The dollar index retreated for a second day and is headed for a decline in July after slipping last month.
The euro climbed to a 2 1/2-month high in London as figures showed that German unemployment declined for a 13th month and economic confidence in the euro region rose more than forecast in July. Europe probably will account for about 20 percent of global copper usage this year, according to Barclays Capital.
Jobless Claims
A report due at 8:30 a.m. New York time may show initial jobless claims in the U.S. fell to 460,000 last week from 464,000 in the prior period, according to a Bloomberg survey. The country is the worlds second-biggest copper consumer after China.
Canceled warrants for LME copper rose for a second day, gaining 8.8 percent to 35,650 tons, daily exchange figures showed. Copper stockpiles tracked by the LME rose for the first day in four to 411,525 tons. Yesterday they were at the lowest level since Nov. 17. Inventories are down 18 percent this year and headed for the first annual drop since 2004.
Zinc for three-month delivery on the LME gained 2.1 percent to $1,995 a ton. Nyrstar NV, the worlds largest producer, said demand in its main markets continued to strengthen in the first half of 2010. Profit beat analyst estimates after the company resumed full smelter output.
Zinc has dropped 22 percent this year, the most among the six main metals traded on the LME, after more than doubling last year. Today it rose to the highest intraday price since the middle of May, as did lead and aluminum.
Aluminum rose 1.7 percent to $2,103 a ton and lead advanced 0.6 percent to $2,029 a ton. Nickel gained 0.9 percent to $20,580 a ton and tin rose 0.3 percent to $19,575 a ton.
Copper rose for a second day in New York and London to a 12-week high as the dollar weakened, equities climbed and orders to draw metal from stockpiles increased.
The U.S. Dollar Index, a six-currency gauge of the greenbacks strength, dropped as much as 0.8 percent. European shares gained, and futures indicated that U.S. equity indexes will advance when New York trading opens. Canceled warrants, as the orders are known, rose the most in a week.
The markets are ready for a rally and are looking for reasons, said Eugen Weinberg, an analyst at Commerzbank AG in Frankfurt. Today the weaker dollar and friendly equity markets are enough to push metals higher.
Copper for September delivery gained 0.8 percent to $3.272 a pound at 7:51 a.m. on the Comex in New York. The contract climbed as high as $3.2895, the highest intraday price since May 4. Copper for delivery in three months rose 0.8 percent to $7,230 a metric ton on the London Metal Exchange.
A weaker dollar makes metals priced in the currency cheaper in terms of other monies. The dollar index retreated for a second day and is headed for a decline in July after slipping last month.
The euro climbed to a 2 1/2-month high in London as figures showed that German unemployment declined for a 13th month and economic confidence in the euro region rose more than forecast in July. Europe probably will account for about 20 percent of global copper usage this year, according to Barclays Capital.
Jobless Claims
A report due at 8:30 a.m. New York time may show initial jobless claims in the U.S. fell to 460,000 last week from 464,000 in the prior period, according to a Bloomberg survey. The country is the worlds second-biggest copper consumer after China.
Canceled warrants for LME copper rose for a second day, gaining 8.8 percent to 35,650 tons, daily exchange figures showed. Copper stockpiles tracked by the LME rose for the first day in four to 411,525 tons. Yesterday they were at the lowest level since Nov. 17. Inventories are down 18 percent this year and headed for the first annual drop since 2004.
Zinc for three-month delivery on the LME gained 2.1 percent to $1,995 a ton. Nyrstar NV, the worlds largest producer, said demand in its main markets continued to strengthen in the first half of 2010. Profit beat analyst estimates after the company resumed full smelter output.
Zinc has dropped 22 percent this year, the most among the six main metals traded on the LME, after more than doubling last year. Today it rose to the highest intraday price since the middle of May, as did lead and aluminum.
Aluminum rose 1.7 percent to $2,103 a ton and lead advanced 0.6 percent to $2,029 a ton. Nickel gained 0.9 percent to $20,580 a ton and tin rose 0.3 percent to $19,575 a ton.
