Jan. 14 (Bloomberg) -- Copper gained after Federal Reserve Bank of Chicago President Charles Evans said the U.S. central bank should keep policy accommodative to support the economy and China equities jumped by the most in three weeks.
Metal for delivery in three months on the London Metal Exchange rose as much as 0.8 percent to $8,110 a metric ton, before trading at $8,098.50 at 2:10 p.m. in Shanghai. It declined 0.5 percent last week. Tin advanced to $24,980 a ton, the highest since Feb. 14, before falling 0.2 percent to $24,850.
Monetary policy has an important contribution to make in putting “in place policies that slowly but surely bring the prospects of future revenues into balance with future spending,” Evans said today at the Asian Financial Forum in Hong Kong. The Dollar Index declined as much as 0.3 percent to 79.345. The Shanghai Composite Index jumped as much as 2.8 percent to 2,305.979, with the Property Index rising as much as 3.8 percent.
“Evans’ comments and the rally in Shanghai’s stocks fueled a bullish sentiment,” Zhang Tianfeng, an analyst at Dongxing Futures Co., said by phone from Shanghai. “Given the expectation of sustained ample liquidity and a recovering Chinese economy, there’s no reason to be bearish now.”
Futures for April delivery on the Shanghai Futures Exchange added 0.3 percent to 58,620 yuan ($9,424) a ton. Copper for March delivery on the Comex in New York rose 0.9 percent to $3.687 per pound. Net-long positions, or wagers on rising prices, held by funds rose to 20,165 futures and options contracts as of Jan. 8 from 15,924 a week earlier, according to the U.S. Commodity Futures Trading Commission.
On the LME, aluminum, zinc, lead, and nickel also advanced.
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