Bloomberg News

Copper, Aluminum, Nickel Climb on Optimism Greece Won’t Default

June 28, 2011

June 28 (Bloomberg) -- Copper and nickel advanced as optimism that Greece won’t default drove the euro higher against the dollar for a second day, making industrial metals more attractive to investors.

Three-month copper on the London Metal Exchange climbed as much as 0.6 percent to $9,020 a metric ton, and was at $9,005 at 10:49 a.m. in Singapore, while nickel gained as much as 0.7 percent to $22,350 a ton. Aluminum also climbed as Greek creditors may agree to roll over the nation’s debt to prevent a default before lawmakers in the country vote tomorrow on budget cuts and asset sales needed to secure an aid payment.

“We’re not going to see a strong rebound as long as this Greece issue hangs over investors’ heads,” said Yang Jun, an analyst at Hongyuan Futures Co. “The macroeconomic environment will continue to drive direction.”

Copper on the Comex in New York rose as much as 0.7 percent to $4.0970 a pound, while metal for September delivery on the Shanghai Futures Exchange climbed as much as 0.9 percent to 67,450 yuan ($10,419) a ton.

The dollar fell for a second day against a six-currency basket including the euro after Germany welcomed a proposal from French lenders on a rollover agreement involving 70 percent of Greek bonds, sending Asian equities higher.

Aluminum in London climbed 0.4 percent to $2,520.25 a ton and zinc rose 0.4 percent to $2,262.75 a ton. Lead dropped 0.3 percent to $2,560 a ton, while tin lost 0.3 percent to $25,000 per ton.

--Editors: Jake Lloyd-Smith, James Poole

To contact the reporter on this story: Glenys Sim in Singapore at gsim4@bloomberg.net

To contact the editor responsible for this story: James Poole at jpool4@bloomberg.net


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