Copper Jumps to 10-Month High on Brighter U.S. Economic Outlook
By Millie Munshi
Aug. 5 (Bloomberg) -- Copper rose for a fifth day, touching a 10-month high, as reports signaling a global economic rebound boosted the demand outlook for industrial commodities.
U.S. employers cut fewer jobs last month than in June as the deepest recession since World War II eased, payroll-servicer Automatic Data Processing Inc. reported today. Orders for U.S. manufactured goods rose for a third straight month in June, climbing 0.4 percent from May, the Commerce Department said. Copper has almost doubled in 2009 on signs of reviving demand.
Copper is rising on the continuation of the optimism for the economy, said Donald Selkin, National Securities Corp.s chief market strategist in New York. Theres anticipation that demand will be higher.
Copper futures for September delivery climbed 1.65 cents, or 0.6 percent, to $2.812 a pound on the New York Mercantile Exchanges Comex division and extending its rally to the longest since Jan. 2. Earlier, the metal touched $2.8385, the highest for a most-active contract since Oct. 1.
U.S. companies trimmed 371,000 jobs in July, ADP reported, following revised cuts of 463,000 positions in June. Economists forecast a July reduction of 350,000 positions, the median of 30 estimates in a Bloomberg News survey.
All the euphoric buying has been a little premature, said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. Todays data shows that were still going to see a lagging job market for some time.
On the London Metal Exchange, copper for delivery in three months rose $150, or 2.5 percent, to $6,200 a metric ton ($2.81 a pound). Among other LME-traded metals, aluminum, zinc, nickel, lead and tin all rose.
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Last Updated: August 5, 2009 14:29 EDT