Crude oil and industrial metals rebounded from a two-day slump as the dollar weakened and economic confidence in Europe strengthened. Hog futures fell for a sixth day as swine flu spread.
Crude rose back above $50 a barrel in New York, while copper advanced the most in two weeks on the London Metal Exchange. Lean hogs continued their worst losing streak since February in Chicago. The MSCI World Index of shares climbed for the first time in three days.
“Commodities are up because of a couple of things, stronger equities and dollar weakness are not hurting things either,” said David Thurtell, a commodities analyst at Citigroup Inc. in London. “There is more data out today, and it suggests the worst has passed.”
The swine flu outbreak, now confirmed in seven countries, had threatened to derail the rebound in commodity prices that started in March because of speculation the disease would undermine governments’ efforts to revive economic growth.
European confidence in the economic outlook increased for the first time in 11 months in April, the European Commission in Brussels said today. The Dollar Index, which values the greenback against six major currencies, declined as much as 0.7 per cent as investors bet the US economy is showing signs of recovery, sapping demand for the dollar as a refuge.
US gross domestic product dropped at a 4.7 per cent annual pace in the first quarter, slowing from the fourth quarter’s 6.3 per cent rate, according to the median estimate of 71 economists surveyed by Bloomberg. The figures are due out at 1.30 pm London time.
On the LME, copper for three-month delivery gained as much as $149.75, or 3.6 percent, to $4,334.75 a tonne and was at $4,297.
More From This Section
Aluminum rose 1 percent, nickel added 1.6 percent and zinc climbed 3 per cent. The LME Index of six metals fell 5.3 per cent in the week’s first two days.
Crude for June delivery rose 91 cents, or 1.8 per cent, to $50.83 a barrel on the New York Mercantile Exchange. Oil declined for two days on speculation that the swine-flu outbreak would curb air travel.
Corn for July delivery gained 0.8 per cent to $3.865 a bushel on the Chicago Board of Trade. Soybeans for July added 1.3 per cent to $9.96 a bushel.
Hog futures for June settlement dropped 0.65 cent, or 1 percent, to 65.65 cents a pound on the Chicago Mercantile Exchange. Pork-belly futures for July delivery declined 1.625 cents, or 2.1 per cent, to 76.175 cents a pound in Chicago. Pork bellies are used to make bacon.
Mexico said 159 people may have died from swine flu, with seven of those verified by laboratory tests. Seven countries have confirmed the malady, including the UK, Canada, Israel, New Zealand and Spain, laying the seeds for a possible global pandemic, according to the World Health Organization. A Texas child became the first person in the US to die from the flu.