Copper Futures Rise as U.S. Economy Expands More Than Forecast

Copper futures advanced for the second time in three days as the economy expanded at a faster pace than forecast in the U.S., the world’s second-biggest consumer of the metal.

Gross domestic product rose at a 2.8 percent annualized rate in the third quarter, government figures showed today. The median forecast of economists surveyed by Bloomberg called for a 2 percent advance. Earlier, copper fell as much as 0.3 percent as the dollar strengthened against the euro after the European Central Bank cut its benchmark interest rate to a record.

“Copper is getting support from the GDP report,” Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago, said in a telephone interview. “Of all the metals, it’s the one that’s shrugging off the effects” of the cut in Europe, he said.

Copper futures for December delivery rose 0.3 percent to $3.2455 a pound at 9:42 a.m. on the Comex in New York. The metal fell 0.7 percent last month.

China is the biggest copper consumer. The dollar jumped to a seven-week high against a basket of 10 currencies.

Copper stockpiles monitored by the London Metal Exchange fell for the fourth straight session to the lowest since March.

On the LME, copper for delivery in three months rose 0.3 percent to $7,136.50 a metric ton ($3.24 a pound). Aluminum, lead, nickel, tin and zinc fell in London.

To contact the reporters on this story: Joe Richter in New York at jrichter1@bloomberg.net; Agnieszka Troszkiewicz in London at atroszkiewic@bloomberg.net

To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.