Market and product
Copper climbs on signs of European growth
NEW YORK — Copper prices rallied for a fifth day Monday after a new report showed Europe's economy might not be hurting from mounting deficits as much as previously thought.
Stocks and most commodities rose after industrial production in the 16 countries that use the euro grew more than forecast in April. That provided hope Europe's economy would not stagnate to the point of slowing down a global recovery.
Strong industrial production around the world boosts expectations for demand for copper, which is used in manufacturing.
Copper for July delivery rose 8.8 cents, or 3 percent, to settle at $2.992 a pound. It briefly rose above $3 a pound for the first time since June 3.
"The panic mode is starting to recede with the euro stabilizing," said Edward Meir, senior commodities analyst at MF Global. "We're seeing a bit of a relief rally."
The euro jumped back above $1.22 for the first time since June 4, rising to $1.2228 in afternoon trading. The currency has been considered a strong indicator of confidence in Europe's economy and has often driven stocks and other risky assets like commodities lower in recent weeks.
The euro had been steadily plummeting since late April. That in turn drove the dollar higher and commodities lower. Commodities are priced in dollars, so a stronger dollar makes them more expensive for foreign investors and tends to push their prices lower.
Other industrial metals, energy contracts and grains rallied throughout the day as part of a broad rebound in commodities. Platinum for July delivery rose $28.40 to settle at $1,563.40 an ounce, while palladium for September delivery rose $14.05 to $462.60 an ounce.
Benchmark crude for July delivery rose $1.34 to $75.12 a barrel on the New York Mercantile Exchange.
Among other July energy contracts, heating oil rose 1.97 cents to $2.0250 a gallon, while gasoline rose 2.67 cents to settle at $2.0764 a gallon. Natural gas rose 22.5 cents to settle at $5.006 per 1,000 cubic feet.
Wheat for September delivery rose 10.5 cents to $4.6725 a bushel, while corn for July delivery rose 4.25 cents to settle at $3.5375 a bushel. July soybeans rose 5.25 cents to $9.515 a bushel.
Gold dropped as investors sought riskier assets. August gold fell $5.70 to settle at $1,224.50 an ounce.
(Source: AP, By STEPHEN BERNARD)
