Copper Rises to Two-Month High on Hopes for Economic Rebound
London, May 21 (Bloomberg) -- Copper rose to a two-month high
on traders' hopes that growth in leading economies will rebound
next year, boosting demand for the metal used in construction and
electronics.
Copper for three-month delivery on the London Metal Exchange
rose as much as $32 or 1.9 percent, to $1,745 a metric ton, its
highest since March 20. The metal has risen 4.8 percent in the
past week, though it is down 4.6 percent on the year.
Traders are preparing for a reacceleration of world economic
growth after five interest-rate cuts by the U.S. Federal Reserve
this year, analysts said.
``It's looking pretty good for 2002,'' said Ted Arnold, an
analyst at Prudential Bache Securities in London. ``I can't see
the world (economy) going to hell in a handbasket.''
On the New York Mercantile Exchange, copper for July delivery
rose as much as $1.20, or 1.5 percent, to 79.95 cents a pound.
Traders buying copper to cover prior agreements to sell, or
short positions, also drove the metal's rise in London, analysts
said. So did the market's ability to sustain a price above $1,720
a ton, even though some traders had placed automatic orders to
sell at that level.
``People are trying to price in a better global
environment,'' said Robin Bhar, an analyst at Standard Bank in
London. ``There is going to be some shortage of copper and
aluminum.''
--Jon Hurdle in the London newsroom (44) 207 673 2095 or
jhurdle1@bloomberg.net/cm |
