Copper rose in London after U.S. construction and manufacturing reports signaled expansion.
The Institute for Supply Management’s August factory gauge unexpectedly climbed to the highest since March 2011 as U.S. construction spending jumped 1.8 percent in July. Copper fell yesterday as manufacturing slowed in China, the biggest buyer.
“There seems to be a little bit more interest in copper,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen. “The U.S. is looking good and in China there’s hoping for additional support.”
Copper for delivery in three months rose 0.4 percent to $6,966 a metric ton at 3:02 p.m. on the London Metal Exchange after falling 0.6 percent yesterday. The futures on the Comex in New York were little changed from the close on Aug. 29 at $3.164 a pound. There was no close yesterday in New York because of Labor Day.
Gains were limited as the dollar climbed to a seven-month high against the yen, and strengthened against the euro. “The dollar is making new highs, creating quite a lot of headwinds,” Hansen said. Investors shouldn’t buy copper in New York unless it falls below $3.10 a pound, he said.
Copper stockpiles in warehouses monitored by the LME dropped 0.1 percent to 147,825 tons, the third consecutive decline. Inventories dropped 60 percent this year.
Aluminum, lead and zinc also advanced on the LME as nickel and tin declined.