Copper futures rose for the second straight day as signs of progress on Europe’s debt crisis, while an International Monetary Fund projection for faster global economic growth buoyed the outlook for metal demand.
Spain sold more debt than planned, while German investor confidence unexpectedly rose to a two-year high. The IMF raised its forecast for global growth in 2012 to 3.5 percent from 3.3 percent and lifted its estimate for U.S. expansion. The reports helped allay concerns sparked by data showing lower foreign direct investment in China and a surprise drop U.S. housing starts.
“The big fear is with the euro zone, and the news today appeases some of the investor concerns about a catastrophic scenario,” Adam Klopfenstein, a market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Investors were able to shrug off some of the earlier data out of China and the U.S.”
Copper futures for July delivery rose 0.4 percent to $3.6495 a pound at noon on the Comex in New York. Earlier, the price fell as much as 1.2 percent. Before today, the metal dropped 4.9 percent this month after gaining 11 percent in the first quarter.
On the London Metal Exchange, copper for delivery in three months rose 1 percent to $8,061.75 a metric ton ($3.66 a pound).
Aluminum, nickel and tin gained in London. Lead and zinc dropped.
To contact the reporter on this story: Joe Richter in New York at email@example.com
To contact the editor responsible for this story: Steve Stroth at firstname.lastname@example.org