Copper Trades Near One-Month High Amid China Speculation
Copper traded near the highest level in a month amid speculation the government in China, the world’s biggest consumer, may ready to step in to boost growth.
Metal for delivery in three months on the London Metal Exchange was little changed at $7,035.25 a metric ton at 11:18 a.m. in Shanghai. The price climbed to $7,053 yesterday, the highest since June 18.
Premier Li Keqiang’s government sees 7 percent growth as the bottom line for tolerance of an economic slowdown, Chinese news organizations reported, signaling the nation will act to support expansion if needed. China’s stocks gained today, with the benchmark Shanghai Composite Index (SHCOMP) rising as much as 2.1 percent, the most in almost two weeks.
“Market participants believe that the Chinese government will take actions when they think necessary to boost the economy,” said Xu Liping, an analyst at HNA Topwin Futures Co. in Shanghai. “Copper is poised to test $7,100 near term.”
Copper for delivery in September on the Comex was little changed at $3.1845 a pound. Metal for delivery in November on the Shanghai Futures Exchange rose 0.2 percent to 50,470 yuan ($8,217) a ton.
On the LME, aluminum was little changed. Nickel, lead and zinc advanced, while tin fell.
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