Copper soars 10% as markets rebound
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Copper jumped almost 10 per cent on Tuesday as a global effort to recapitalise banks triggered a bounce in financial markets and eased economic growth worries. Gains across the base metals complex came as US plans to inject $250 billion into its banks, following a concerted European drive to do the same, boosted stock markets.
''It's a bit of euphoria after the U.S. rescue package was announced,'' said Mr Leon Westgate, analyst at Standard Bank. ''Concerns still remain about the global outlook and we shall see how sustained the rally is.''
Copper for delivery in three months on the London Metal Exchange rose as high as $5,615 a tonne, up 9.8 per cent, from $5,115 at the close on Monday. It traded up $405 at $5,520 in official rings. The metal, used in construction and power industries, increased almost 7 per cent on Monday but a 22 per cent drop in prices last week means that copper is only at its highest level since Oct 8.
Aluminium up
LME aluminium rose to $2,305 from $2,250 as financial turmoil delayed a $10.6 billion aluminium joint venture between Rio Tinto and Saudi Arabian Mining Co . Nickel jumped to $13,430, up 5.0 per cent, from $12,800. Lead was last quoted at $1,610/1,615 a tonne from $1,565. Zinc climbed $4 to $1,484 a tonne, while tin was last bid at $14,800 a tonne from $14,525.
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Source : Business Line |
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