Copper up on better US jobs data

Saturday, 28 Aug 2010
AAP reported that Copper rallied after stronger than expected jobs data from the United States eased concerns about growth of the world's largest economy.

Also boosting sentiment, Swiss mining and commodities giant Glencore International said a sharp rise in metals prices had sent its H1 net income soaring 42% while a planned USD 1 billion asset sale was on track.

Benchmark copper on the London Metal Exchange rose to a session high of USD 7,320 per tonne after US weekly jobless claims fell more than expected.

Mr Andrey Kryuchenkov analyst at VTB capital said that jobless claims were better than expected but that does not constitute a trend change. Market participants will overreact to positive macro economic news since a lot of negativity is already priced.

Mr Eugen Weinberg analyst of Commerzbank said that the market is looking through the crisis right now and saying current prices are attractive longer term, so let's buy. The data is quite weak but we know it and the question is how long will it persist.