- “A little bit of a reprieve'' from pessimism, analyst says
- Europe orders grew at the fastest rate in five months
Zinc rallied from a five-year low, leading a rebound in industrial metals, as economic data showing resilience in the European economy eased demand concerns.
The third-quarter average for a gauge of euro-area manufacturing and services stood at the highest in more than four years, even as the index slipped in September, according to a report Wednesday from Markit Economics. Zinc fell to the lowest since 2010 on Tuesday and the Bloomberg Industrial Metals sub-index of metals posted the biggest loss in six weeks as commodities tumbled amid concern over China’s economy.
“It’s a little bit of a reprieve from the pessimism that we’ve seen,” Mike Dragosits, a senior commodity strategist at TD Securities in Toronto, said in a phone interview. Also, “there’s some optimism that we’ll get some additional stimulus measures from policy makers in China” to support growth, he said.
Zinc gained 1.4 percent to settle at $1,651 per metric ton at 5:50 p.m. in London. Nickel, tin and lead also rose on the LME, while aluminum and copper fell.
On the Comex in New York, copper futures for Dec. delivery slipped 0.1 percent to $2.2955 a pound.
In Europe, new orders grew at the fastest rate in five months and a gauge for the amount of raw materials bought by manufacturers stood at a 19-month high, signaling increasing production in the coming months.