Copper advanced in London on signs of growth in China, the world’s largest metals buyer.
China’s services activity index was 52.4 last month compared with 52.8 in August, according to the HSBC China Services report compiled by Markit. An index above 50 indicates an overall increase in services activity. Prices in Shanghai fell 0.2 percent on the first day back after a weeklong holiday.
“China’s September service PMI adds more evidence that the overall economy is improving,” Richard Fu, director for Asian commodity trading at Newedge Group SA in London, said by e-mail today. “Buyers are still holding back waiting for the U.S. debt limit to be sorted.”
Copper for delivery in three months climbed 0.4 percent to $7,274 a metric ton by 10:04 a.m. on the London Metal Exchange. Prices dropped 0.8 percent in London during the China holiday.
Germany may report rising factory orders, economists said in a Bloomberg survey. Alcoa Inc. (AA:US), the biggest U.S. aluminum producer, releases earnings today, marking the unofficial start of the U.S. quarterly reporting season.
Federal Reserve Bank of Dallas President Richard Fisher said yesterday the U.S. “cannot afford to default” and that debt ceiling talks “will come down to the wire.” The country’s borrowing authority is set to lapse Oct. 17.
Nickel fell 0.2 percent to $13,937 a ton, after stockpiles extended gains to a record. Aluminum rose 0.8 percent and lead climbed 0.9 percent.
To contact the reporter on this story: Claudia Carpenter in London at firstname.lastname@example.org
To contact the editor responsible for this story: Claudia Carpenter at email@example.com