Copper futures climbed the most in a week as a report showed the economy expanded at a faster pace in the second quarter in the U.S., the world’s second-biggest consumer of the metal.
Gross domestic product rose at a 2.5 percent annualized rate after expanding 1.1 percent in the first quarter, according to government figures. A separate report today showed applications for unemployment benefits unexpectedly fell last week. Asian investors bought copper to close out bets on a decline before national holidays next week in China, the top metal consumer, Korea Exchange Bank Futures Co. said.
“The growth report is a good number, and as long as that holds up, it’s good for copper,” Michael Smith, the president of T&K Futures & Options in Port St. Lucie, Florida, said in a telephone interview. “China and Europe have also bottomed, so industrial demand is going to be higher.”
Copper futures for December delivery rose 1.1 percent to settle at $3.307 a pound at 1:17 p.m. on the Comex in New York, the biggest increase for a most-active contract since Sept. 19. The metal headed for the first quarterly gain in a year.
Yields on China long-term bonds climbed this quarter by the most since 2010 as the economy showed signs of improvement. Markets will close from Oct. 1 to Oct. 7 for National Day holidays.
Copper stockpiles tracked by the London Metal Exchange fell for the 16th straight session to 545,625 metric tons. They have dropped 18 percent in the third quarter.
On the LME, copper for delivery in three months rose 0.7 percent to $7,251 a ton ($3.29 a pound). Aluminum, lead, tin and zinc gained. Nickel was unchanged.
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