Base metals climbed, with lead leading the advance by rising as much as 3.9 per cent, on expectations that European leaders would act to contain the region’s sovereign debt crisis.
Copper for delivery in three months on the London Metal Exchange gained as much as 2.6 per cent to $7,455 a tonne, and traded at $7,343.75 at 10.34 am Shanghai time. The contract rose for the first time in eight days, after tumbling to a 14-month low of $6,800 a ton yesterday.
The European Central Bank policy makers are likely to debate covered-bond purchases along with further measures to ease monetary conditions, a euro-region central bank official said. The reintroduction of 12-month loans to banks will also be discussed at the October 6 meeting, according to the person, who spoke on condition of anonymity.
“Markets are due for a rebound following the steep losses last week and the good news came from Europe last night became the trigger,” said Li Ye, an analyst at Shanghai Jiuheng Futures Co. “For a sustained rally, we need some substantive measures from the European leaders that can really solve the debt problems.”
December-delivery metal on the Comex in New York rose 1.8 per cent to $3.3420 a pound. The metal for December delivery on the Shanghai Futures Exchange climbed for the first time in seven days, gaining 3.6 per cent to 55,260 yuan ($8,670) a tonne. Aluminum rose 1.4 per cent to $2,234.25 a tonne, and zinc gained 2.3 per cent to $1,925 a tonne.
