Nickel Climbs From 13-Year Low as Stocks Halt Week-Long Skid

  • Mining shares advance, led by Teck, Anglo and Freeport
  • `This may help reverse some of that negative sentiment:' Melek

Nickel climbed from a 13-year low, leading a rebound in industrial metals, as a rally for U.S. equities eased concerns over stalling economic growth. Shares of mining companies rose, with Teck Resources Ltd. posting the biggest intraday gain since August.

The Standard & Poor’s 500 Index snapped its longest losing streak since September and crude oil climbed as U.S. retail sales increased for a third month in January. Industrial metals are recovering after Federal Reserve Chair Janet Yellen suggested this week that market turbulence may throw policy makers off course from the multiple increases for U.S. interest rates they had signaled for this year. Lower rates can help to buoy growth and lift demand for commodities.

“You’ve had a bit of a move higher in risky assets, the S&P 500 is up, energy is up, and metals went for a bit of a ride with that stuff,” Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. “It’s not spectacular, but I think with what we’ve seen the market do over the last week in particular, this may help reverse some of that negative sentiment.”

Nickel for delivery in three months climbed 3 percent to settle at $7,820 a metric ton at 5:51 p.m. on the London Metal Exchange, the biggest gain since November. Prices touched $7,550 on Thursday, the lowest since 2003.

Teck, which slumped 5.3 percent on Thursday even after beating analysts’ earnings estimates, surged as much as 22 percent on Friday in Toronto. Freeport-McMoRan Inc., the world’s biggest publicly traded copper miner, jumped as much as 17 percent.

In other metals and mining markets:

  • Copper futures for March delivery gained 1.1 percent to $2.029 a pound on the Comex in New York.
  • Aluminum, nickel and lead also gained on the LME, while tin and zinc fell.
  • The Bloomberg World Mining Index climbed 3.1 percent, lead by gains in Teck, Anglo American Plc and Glencore Plc.
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