Copper Gains on Hope for Higher Demand, Crude Rises
Copper climbed today on speculations that China would stimulate its slowing economy, the step that may increase demand for the industrial metal. Premier Wen Jiabao said that country’s inflation reached the lowest level in 29 months, causing the government to seek ways for preventing further slowdown. Chinese consumer price inflation slowed from 3.0 percent to 2.2 percent in June. Last week, China’s central bank performed a surprise interest rate cut, the second in a row. The previous decrease of the main rate in June was the first in several years. September futures for delivery of copper rose 0.6 percent to $3.4315 per pound as of 13:17 on COMEX.
Crude oil rose today on fears that labor a strike would stop all production in Norway. The government actually managed to avoid the strike, as the recent reports suggest, but it is too early to say how strong the news would impact the markets. Norway is the biggest oil exporter in Western Europe. August futures for delivery of crude oil advanced as much as $1.54 to $85.99 per barrel on NYMEX.
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