Copper Rose for a Third Day in London as Chinese Services Industries Expanded

Copper rose for a third day in London as Chinese services industries expanded at the fastest pace in four months, bolstering prospects for an economic rebound in the world’s biggest consumer of the metal.

China’s statistics bureau and its logistics federation said that a purchasing managers’ index climbed to 56.1 in December. Copper advanced the most since September January 2nd after lawmakers in the US the second-largest copper user, passed a bill to avoid tax increases and spending cuts. Lead reached the highest price in 16 months today.

Mr Mark Newson-Smith head of sales at XConnect Trading Ltd in London said that “The market will be keen to buy any pullbacks. Any gains are likely to be less spectacular than yesterday.”

Copper for delivery in three months added 0.2 percent to USD 8,229 a metric tonne by 10:50 AM on the London Metal Exchange. Prices touched the highest level since October 18. Copper for delivery in March rose 0.2% to USD 3.745 a pound on the Comex in New York. Chinese markets are shut for a holiday.

Mr Newson-Smith said that “There is a feeling too that the Chinese may well sell on their return to trading tomorrow.”