Copper Futures Rise to Three-Week High as Equities, Crude Rallyby
Freeport-McMoRan among top gainers on the S&P 500 Index
U.S. stocks gain, helped by company earnings, weaker dollar
Copper futures advanced to the highest in three weeks, helping boost shares of miners including Freeport-McMoRan Inc., amid a rise in global equities and a rebound in crude oil.
Global stocks climbed, helped by better-than-forecast results at some U.S. companies and a drop in the dollar. A weaker greenback boosts demand for commodities as alternative assets. Rising oil prices increase production costs, deterring miners from raising output as the market struggles to unwind excess metal supplies.
“A continuation higher in global equities, along with this rebound we’ve seen in the energy markets, are driving industrial metals higher,” David Meger, the director of metals trading at High Ridge Futures in Chicago, said in a telephone interview. “The expectation for increased demand from a growing global economy supports the copper market.”
Copper futures for July delivery rose 2.7 percent to settle at $2.2315 a pound at 1:26 p.m. on the Comex in New York, after touching $2.234, the highest since March 29. The metal has climbed in seven of the past eight sessions.
Phoenix-based Freeport jumped as much as 8.3 percent, among the biggest advances on the Standard & Poor’s 500 Index of equities.
In other metals:
- Copper, aluminum, zinc, lead, nickel and tin gained on the London Metal Exchange.
- The Bloomberg World Mining Index jumped 3.8 percent.