Copper Climbs to 11-Week High Amid Advancing Global Equities

May 28, 2014 1:59 pm ET

May 28 (Bloomberg) -- Copper climbed to 11-week high in London amid speculation that rising global equity markets indicate a favorable outlook for economic growth. Aluminum touched a one-month high.

The Standard & Poor’s 500 Index of shares traded little changed today, after reaching a record high yesterday. U.S. orders for durable goods in April unexpectedly gained for a third straight month, while Chinese industrial profits rose. The nations are the world’s top copper consumers.

“Traders are optimistic about growth prospects,” Naeem Aslam, chief market analyst at Ava Capital Markets Ltd. in Dublin, said by e-mail. “The recent rise in copper prices is clearly a spillover effect of the equity markets.”

On the London Metal Exchange, copper for delivery in three months rose 0.1 percent to settle at $6,944 a metric ton ($3.15 a pound) at 5:50 p.m. local time. The price touched $6,970, the highest since March 7.

On the Comex in New York, copper futures for July delivery slid 0.1 percent to close at $3.1735 a pound.

Inventories monitored by the LME slumped 3.8 percent today to 169,825 tons, the biggest drop in more than six years. Stockpiles have slumped 54 percent this year.

Copper for immediate delivery traded at a $101-a-ton premium to the LME’s three-month contract, the widest spread in two years.

Aluminum for delivery in three months rose 0.6 percent to $1,840 a ton in London after touching $1,848, the highest since April 28. LME stockpiles are the lowest since June.

Tin also climbed in London, while lead, nickel and zinc fell.

--With assistance from Alex Davis in Hong Kong and Jae Hur in Tokyo.