Bank Recapitalization Sparks Copper Price Surge
Source: Reuters (10/14/08)
Base metals surged today, with London copper futures up as much as 7.5 percent, steaming alongside rises in the region's equity markets as a global effort to recapitalise banks sparked a broad recovery.
Commodity markets have been seeking a bottom after falling almost 40 percent since July's highs. The Reuters-Jefferies CRB index, a global commodities benchmark, gained 3 percent to 298.70, after scoring its lowest since Jan 2007, last week.
The recovery came after the U.S. government agreed on Monday to take $25 billion stakes in several big banks to shore up the banking system and European governments pledged more than 1 trillion euros ($1.36 trillion) to bolster their own banks.