Copper Rises Most in a Week as Drop in U.S. Jobless Rate Bolsters Outlook
Copper prices rose the most in a week after U.S. unemployment declined, easing economic concerns.
The jobless rate dropped to 9.5 percent in June from 9.7 percent the prior month, the Labor Department said. Economists surveyed by Bloomberg had forecast the rate would rise to 9.8 percent, the median of 81 estimates. Copper fell 17 percent last 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 today,” said Donald Selkin, the chief market strategist at National Securities Corp. in New York.
Copper futures for September delivery added 3.9 cents, or 1.4 percent, to $2.916 a pound on the Comex in New York. That marked the biggest advance for a most-active contract since June 25.
Gains were capped as some traders viewed the smaller-than- forecast increase in private payrolls as “another negative,” Selkin said. Employment at companies rose by 83,000, less than the economists’ forecast of 110,000. The U.S. is the 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.
Copper prices have tumbled 13 percent this year. Europe’s sovereign debt crisis, U.S. job losses and China’s moves to cool its expansion have spurred concern that the global economy will slow and metals demand will decline.
Copper for delivery in three months rose $120, or 1.9 percent, to $6,450 a metric ton ($2.93 a pound) on the London Metal Exchange.
Aluminum, zinc, lead and tin prices also rose. Nickel was little changed.
To contact the reporters on the story: Anna Stablum in London at astablum@bloomberg.net; Millie Munshi in New York at mmunshi@bloomberg.net
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