July 13 (Bloomberg) -- Copper prices rose for the sixth time in seven sessions after aluminum producer Alcoa Inc. reported better-than-expected sales and profit, boosting the outlook for metal demand.
The Standard & Poor’s 500 Index gained, extending the longest winning streak in three months, buoyed by Alcoa’s second-quarter results, which signal that the world economy is resilient after recent signs of a slowdown. Copper has dropped 9.8 percent this year on concern that demand would flag.
“When you have a major company in the commodity sector saying there’s a more positive outlook, it gives a boost to a lot of the markets,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago.
Copper futures for September delivery rose 0.85 cent, or 0.3 percent, to $3.0175 a pound on the Comex in New York. The industrial metal climbed 4.7 percent last week.
“There’s a lot more positive sentiment now,” said Gijsbert Groenewegen, a partner at Gold Arrow Capital partners in New York. “That’s not the same as a fundamental shift for growth. There’s still a lot of uncertainty.”
Copper tumbled 17 percent in the second quarter on concern China’s moves to cool its economy and Europe’s debt crisis would slow global growth.
On the London Metal Exchange, copper for delivery in three months advanced $55, or 0.8 percent, to $6,685 a metric ton ($3.03 a pound).
Global aluminum demand will increase 12 percent this year, Alcoa said yesterday, after the close of metals trading in New York. The company previously predicted a 10 percent rise.
Aluminum added 1.2 percent to $1,995 a ton on the LME. Lead, zinc, nickel and tin also gained.
--Editors: Steve Stroth, Michael Arndt.
To contact the reporter on the story: Millie Munshi in New York at mmunshi@bloomberg.net
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
Source: http://www.businessweek.com/news/2010-07-13/copper-advances-as-alcoa-s-earnings-trigger-rally-in-metals.html
