Copper advanced for the first time in five days, rallying from the lowest level in more than five months, amid speculation global policy makers will take steps to stimulate economic growth.
July-delivery metal rose as much as 1.4 percent to $3.3515 a pound on the Comex and traded at $3.3135 by 4:30 p.m. Tokyo time. The contract touched $3.2380 yesterday, the lowest level since Dec. 15. The London Metal Exchange is closed for a second day for a public holiday.
Finance ministers and central bank governors from the Group of Seven countries will hold a call today to discuss the European debt crisis, according to Canadian Finance Minister Jim Flaherty. Markets have been bracing for a worsening in Spain’s finance sector and a possible Greek departure from the 17-member euro area as the region’s leaders continue to wrangle over the details of support for the currency bloc.
“It’s all anticipation that leaders of the major economies will take measures to stop a further deterioration,” said Hwang Il Doo, a senior trader at Korea Exchange Bank (004940) Futures Co. in Seoul. “In coming days, we will see whether today’s rally is a dead-cat bounce.”
The September contract on the Shanghai Futures Exchange climbed 1.4 percent to close at 53,490 yuan ($8,406) a ton, gaining for the first time in six days.
Workers at Freeport-McMoRan Copper & Gold Inc. (FCX:US)’s Grasberg mine in Indonesia threatened to return to strike as tensions grow following the dismissal of three union members this month, union spokesman Juli Parorrongan said today.
Freeport halted production at Grasberg, which has the world’s largest recoverable copper reserves, for more than two weeks in February and March after violence flared following a three-month strike last year over pay that hurt global supply and boosted copper prices.
Asian stocks rose after a four-day drop left the regional gauge at the cheapest level this year. The MSCI Asia-Pacific Index (MXAP) gained 1.4 percent. Oil rose for a second day in New York, with July delivery gaining 0.3 percent to $84.19 a barrel.
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