Copper Climbs to Three-Week High
Source: Bloomberg, Yi Tian and Agnieszka Troszkiewicz (5/31/11)
"Investors optimistic, embrace risk on potential for more Greece aid."
Copper rose to a three-week high in New York amid signs that nations will pledge more aid for Greece, boosting global growth prospects.
European Union leaders will decide on additional assistance for Greece by the end of June and have ruled out a "total restructuring" of the nation's debt, Jean-Claude Juncker, who leads the group of euro-area finance ministers, said yesterday in Paris. Stocks rose around the world and the euro climbed.
"We are seeing a macro-based move," said Adam Klopfenstein, a senior market strategist at Lind-Waldock in Chicago. Optimism that there will be more aid "is causing people to embrace risk," he said.
Copper futures for July delivery gained $0.1.7, or 0.4%, to ~$4.20 a pound at 10:34 a.m. on the Comex in New York. Earlier, the price touched $4.21—the highest since May 4.
Before today, the metal dropped 10% since touching a record $4.66 on Feb. 15 partly on concern that global sovereign-debt woes and high U.S. unemployment would derail the global recovery.
Inspectors from the EU, International Monetary Fund and European Central Bank are set to wrap up a review of Greece's progress in meeting the terms of last year's €110 billion ($158 billion) bailout in coming days. The EU will then formulate its plan for further aid to Greece, which remains shut out of financial markets a year after the rescue package.
On the London Metal Exchange, three-month delivery copper rose $67, or 0.7%, to $9,266 a metric ton ($4.21/lb.).
Nickel, lead, aluminum and tin also gained in London. Zinc was little changed.