Copper climbed to the highest in three weeks as the prospect for more stimulus in Europe, the second biggest regional consumer, boosted the outlook for metals demand.
European Central Bank President Mario Draghi unveiled a revamp of quantitative easing to allow for more purchases of euro members’ debt to curb the effects of the emerging market rout. Global stocks climbed after a gauge of services and manufacturing in the euro area rose to a four-year high in August. Copper is headed for a second week of gains, the longest stretch since March.
“Copper is tracking equities higher and the ECB announcement is what kicked it up," Phil Streible, a senior market strategist at RJO Futures in Chicago, said in a telephone interview. "It’s going to promote building new infrastructure, which could create new jobs and stimulate their economy."
Copper futures for December delivery climbed 2.4 percent to settle at $2.3845 a pound at 1:15 p.m. on the Comex in New York, after touching $2.418, the highest since Aug. 11.
Copper for delivery in three months gained 2.5 percent to $5,246 a metric ton ($2.38 a pound) on the London Metal Exchange. Also on the LME, aluminum, nickel and lead rose, while zinc and tin dropped.