Futures Market News
Copper futures benefit from Chinese intention to focus on growth
May 21, 2012 09:56 AM
Copper futures were riding a two-day bullish drive on Monday as the industrial metal aimed to continue climbing after scraping its lowest price last week in 120 days, according to Reuters.
Despite concerns for a Greek default on financial obligations, the reddish metal benefited from leaders of the Group of 8 meetings this past weekend where the nations committed to tackle financial and economic challenges weighing on the debt-hobbled euro zone. As the Aegean nation's second crack at elections approaches June 17, polls indicate voters are gravitating toward the major parties.
"Compared to the pessimism that was going around last week there has been some recovery, but the next significant move (in copper) is going to be in a downward direction," commodities economist Ross Strachan with Capital Economics told Reuters.
At 9:35 a.m. on Monday, copper futures gained 0.32 percent, a 1.1 cent lift to $3.4795 per pound.
Bloomberg attributes the gains to Premier Wen Jiabao of China noting the Asian nation will redouble efforts toward economic growth. That would boost demand for the industrial metal for its top consumer.
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