Tuesday, May 19, 2009

Copper: Shanghai Limit Up; Up Fourth Day in London

U.S. Futures were recently up 1.8%.
From Reuters:

Shanghai copper up by limit on equities, spot prices

...Asian shares climbed to their highest level in seven months on renewed hopes that the worst phase in the global economy is nearing an end. [ID:nSP415717]
But worries over weak consumption and oversupply vied with hints the sickly U.S. housing sector may be on the mend still lingered in the market....
...Third-month benchmark Shanghai copper SCFc3 rose to36,860 yuan a tonne, up by its 5 percent daily limit from the previous session's settlement....
From Bloomberg:

Copper Gains in London on Rising Equities, Falling Stockpiles
Copper advanced for a fourth day in London, the longest winning streak in a month, on gains by equity markets, a further drop in stockpiles and indications of a revival in the housing market.

The MSCI World Index rose for a second day, adding as much as 1.2 percent. Copper inventories in warehouses monitored by the London Metal Exchange fell for a ninth day. An association of U.S. house builders said yesterday its gauge of industry confidence rose for a second month, and a report today will show housing starts increased, according to economists’ forecasts.

“Housing data is fairly important,” Andrey Kryuchenkov, an analyst at VTB Capital in London, said by phone. Metals may climb further if the housing-starts figures provide additional evidence of a rebound, he said, particularly if shares also advance on the news. Investors’ greater willingness to take on risk is driving stocks higher, helping to lift metals, he said.

Copper for three-month delivery rose $93, or 2.1 percent, to $4,613 a ton at 10:21 a.m. on the LME. In Shanghai, copper futures rose by the exchange-imposed 5 percent daily limit. The metal for July delivery added 1.4 percent to $2.1010 a pound on the New York Mercantile Exchange’s Comex division....MORE