- U.K. mining shares rally together with indutrial metals
- U.S. economic expansion beats median forecast in survey
Mining stocks rose the most in more than 10 weeks in London as aluminum and lead advanced after a report showed the U.S. economy expanded faster than estimated, boosting demand in the second-largest metals user.
The U.S.’s gross domestic product expanded at a revised 2 percent annualized rate, a government report showed on Tuesday, beating the median forecast in a Bloomberg survey calling for a 1.9 percent increase. China, the biggest metals consumer, will add monetary stimulus next year, making good on a pledge to support growth as leaders push through policies to cut overcapacity and reliance on credit, according to economists surveyed by Bloomberg.
“There’s been a lot of short-term borrowing around on aluminum and lead,” Robert Montefusco, a broker at Sucden Financial Ltd., said by e-mail. “The U.S. figure’s good. Chinese demand is still there, expecting national grid demand for copper again next year.”
Glencore Plc, the Swiss commodity trader and miner, was among the three-biggest gainers on the FTSE 350 Mining Index, jumping 7.2 percent to the highest since Dec. 10. Anglo American Plc advanced 6.4 percent while BHP Billiton Ltd., the largest mining company, increased 6.1 percent.
Aluminum for delivery in three months climbed 0.8 percent to $1,519 a metric ton by 11:07 a.m. on the London Metal Exchange after reaching $1,524.50 a ton, the highest since Nov. 27. The LME index of industrial metals is down 25 percent this year, heading for the biggest loss since 2008. Nickel, the worst-performing main industrial metal, has declined 43 percent.
Zinc surged as much as 1.8 percent and lead rose as much as 1.7 percent. Copper climbed as much as 1.1 percent amid news of further power-supply disruptions in Zambia affecting copper production, according to Kingdom Futures Ltd., a West Malling, England-based brokerage.