Copper rose in London as investors awaited the outcome of a European Central Bank policy meeting and economic reports projected to indicate continued expansion in the U.S. and China.
Only three of 70 economists surveyed by Bloomberg expect the ECB to cut its benchmark interest rate from 0.5 percent. Reports today and tomorrow will show the U.S. economy swelled at a 2 percent annualized rate last quarter and employers hired more than 100,000 workers for a third straight month in October. The U.S. and China are the two biggest copper consumers.
“The economic agenda is busy,” William Adams, an analyst at FastMarkets Ltd. in London, said in a report. He cited buying of copper on dips while saying the market “is looking vulnerable” after testing support levels yesterday.
Copper for delivery in three months added 0.1 percent to $7,125 a metric ton by 11:34 a.m. on the London Metal Exchange, paring an advance of as much as 0.6 percent. Copper for delivery in December rose 0.1 percent to $3.24 a pound on the Comex in New York.
Reports tomorrow and the following day will show that exports from China rebounded last month from a decline in September and industrial production expanded 10 percent, near the prior month’s rate. Leaders of the nation’s Communist Party will meet for four days starting Nov. 9 to discuss policies.
Copper stockpiles monitored by the LME, at the lowest since March, fell for a fourth session to 467,025 tons. Orders to draw the metal from warehouses declined 0.7 percent to 286,550 tons.
Zinc, aluminum, lead, nickel and tin fell in London.
“Overall LME metals remain under small pressure from the recent dollar rebound and fears that the U.S. central bank will still be the first one to curb liquidity,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said by e-mail.