Already a Bloomberg.com user?
Sign in with the same account.
(Corrects metals gaining in first paragraph.)
June 24 (Bloomberg) -- Copper and lead climbed, joining a rebound in other commodities, including oil, after European leaders showed support for Greece, easing concern that a default may hurt global growth.
Three-month copper on the London Metal Exchange advanced as much as 2.1 percent to $9,145 a metric ton, and traded at $9,089.75 by 4:05 p.m. in London. The metal, down 0.1 percent this week, dropped to a one-week low of $8,900 a ton on June 20 on concern that the Greek debt crisis may derail the global economy.
“We’re seeing a bit of a relief rally today which will be difficult to sustain as the global macroeconomic environment isn’t supportive,” Li Qiang, an analyst at Xinhu Futures Co., said from Shanghai.
Copper on the Comex in New York rose 1.6 percent to $4.122 a pound.
“Europe’s debt problems aren’t over, the U.S. may need to further stimulate their economy and China’s balancing between inflation and growth,” Li said.
European Union leaders at the start of a two-day summit yesterday pledged to stabilize the euro-area economy, vowing to stave off a Greek default as long as Prime Minister George Papandreou pushes through a package of budget cuts next week.
Risk signals for financial stability in the euro area are flashing “red” as the crisis threatens to infect banks, European Central Bank President Jean-Claude Trichet said yesterday.
In the U.S., the world’s second-largest copper user, applications for jobless benefits rose more than forecast last week, and consumer confidence fell for the first time in five weeks, separate reports showed yesterday. The Federal Reserve this week lowered its forecasts for growth this year and next and raised estimates for the unemployment rate.
Chinese Premier Wen Jiabao said that the country’s efforts to stem inflation have worked and that the pace of consumer- price increases will slow, even as the nation’s top economic planner said inflation may “remain elevated for some months.”
China’s inflation in June will be higher than in May, the National Development and Reform Commission said in a June 22 statement. Consumer prices may jump by more than 6 percent this month after climbing 5.5 percent in May, the China Securities Journal said in an unsigned front-page editorial yesterday.
China hasn’t raised interest rates for 11 weeks, the longest gap since increases began in October, as officials gauge the economy’s strength amid a slowdown in the U.S. and a debt crisis in Europe.
Lead in London climbed 0.6 percent to $2,565 a ton, tin fell 0.4 percent to $25,100 a ton and nickel fell 0.2 percent to $22,085 per ton. Aluminum was little changed at $2,505 a ton and zinc was down 0.8 percent at $2,243 a ton.
--With assistance from Sharon Lindores in London. Editors: Sharon Lindores, Claudia Carpenter
To contact the reporter on this story: Glenys Sim in Singapore at email@example.com
To contact the editor responsible for this story: James Poole at firstname.lastname@example.org