Copper Rises to Eight-Week High in Bet on Post-Brexit Stimulusby
Fed and Asia central-bank policies seen supporting metals
Copper gains for the eighth time in nine trading sessions
Copper touched an eight-week high amid bets that central banks will move further to shore up economies following the U.K. referendum, boosting the outlook for demand.
Global equities advanced and the dollar weakened on signals that governments including Japan and South Korea will act to cushion the impact from the U.K.’s vote to leave the European Union. Federal Reserve Governor Jerome Powell said Brexit concerns may merit a reassessment of monetary policy.
“The market is clearly benefiting from a trifecta of Asian accommodation -- Korea, China and Japan -- and the Federal Reserve is going on vacation until 2018,” Bill O’Neill, a partner at Logic Advisors in Upper Saddle River, New Jersey, said in a telephone interview. “So these accommodative measures have turned the tide for copper and brought it some support.”
Copper futures for September delivery gained 0.5 percent to settle at $2.186 a pound at 1:09 p.m. on the Comex in New York. The metal touched $2.1915, the highest since May 4.
On the London Metal Exchange, copper, zinc, aluminum, lead, nickel and tin advanced.