The U.S. lost fewer jobs than expected in the last month, and the private sector managed to add positions – relatively positive news which had a beneficial effect on both equity indexes and industrial commodities. Copper, a key base metal, saw a rise in price; copper futures gained 70 cents to trade at 350.25 cents per pound.
On the London Metal Exchange, copper rose $55 to $7,960 per metric ton.
“Copper is following the employment report,” Lannie Cohen of Capitol Commodities told Bloomberg News on Friday. “We finally got some good news. Copper is on the heels of a potential rally.”
The Labor Department figures showed an increase of 67,000 jobs on private payrolls; the median estimate of economists came in at just 40,000. In addition, revised data for June and July showed that 123,000 fewer jobs were lost in those months than the previous figures had reported.
“The data is in line with indications we received earlier this week. That tentative improvement in sentiment is now confirmed. When we came out of recession a lot of consumers postponed purchases and drew down onsite inventories, now the need to get back to the market,” Tobias Merath, an analyst with Credit Suisse, told Reuters.
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