Wow-Copper 5.5 cents up for day-Commentary
Moscow - Copper climbed to the highest in three weeks as strong economic data from China fueled speculation of strengthening demand. A measure of London-listed mining stocks advanced for the first time in four days.
Copper rose 1.2% to $4 703.50 a metric ton as of 10:50 on the London Metal Exchange and touched $4 713, the highest since August 24. The other major metals advanced and Glencore shares gained as much as 4.8%, the biggest increase in two months.
"Copper is supported by good buying interest following the good Chinese figures and the less chance of a rate rise by the Fed this month," Richard Fu, the Asia and Pacific chief at Amalgamated Metal Trading in London, said by e-mail.
China’s broadest measure of new credit exceeded estimates in August, rebounding from a month earlier and bolstering evidence that growth is stabilising.
Other Chinese reports this week, such as factory output, investment and retail sales, all exceeded economist estimates - a sign of improving growth in the world’s biggest consumer of metals.
Copper buying
Users, including power-wiring companies, are stepping up purchases of copper ahead of China’s autumn festival after prices fell, Xu Maili, an analyst with Everbright Futures, said by phone from Shanghai. The three-day Chinese holiday starts Thursday.
Copper stockpiles fell in Shanghai and London. The Yangshan copper premium, a barometer of supply and demand in bonded warehouses in the city, has also recovered from a record low, indicating increased demand for imports.
