US copper hits 1-month peak as confidence returns
NEW YORK, July 15 (Reuters) - U.S. copper futures rallied to a one-month high above $2.40 per lb on Wednesday as solid corporate earnings and upbeat economic data boosted hopes that the economy may be starting to recover.
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* Copper for September delivery HGU9 jumped 9.30 cents, or 4 percent, to settle at $2.3920 a lb on the New York Mercantile Exchange's COMEX division.
* Range from $2.2955 to $2.4055 -- highest since June 12.
* COMEX estimated futures volume at 24,036 lots by 1 p.m. EDT (1700 GMT). Final volume on Tuesday was 27,246 lots.
* Open interest up 3,741 lots at 106,268 contracts as of July 14.
* Copper up on dollar weakness .DXY after solid quarterly results and outlook from Intel Corp (INTC.O) and a batch of upbeat economic data reinforce economic recovery hopes - analysts.
* Copper gains accelerated after data showed the slumping factory sector in New York nearly pulled out of contraction in July. [ID:nN15329863]
* Slower-than-expected rate of contraction in U.S. industrial output seen adding to the improved economic sentiment. [ID:nN15329440]
* "Copper benefiting from the better-than-expected manufacturing and industrial production. Both of those indices fell less than expected and showed some signs of stability, so there are some rays of (economic) hope at this point." - Rob Kurzatkowski futures analyst with OptionsXpress in Chicago.
* Copper gains buck sharp increase in London Metal Exchange warehouse stocks.
* LME inventories up 4,200 tonnes at 261,100 tonnes <LME/STX1> on Wednesday.
* COMEX copper stocks CMWSU down 123 short tons at 59,251 short tons as of Tuesday.
* Global copper market in a surplus of 90,000 tonnes in the January-to-May period, compared with a deficit of 170,000 tonnes in the same period in 2008 - the World Bureau of Metal Statistics. [ID:nL711666]
* LME copper for three-months delivery MCU3 closed up $218 at $5,263 a tonne.
* Copper prices to climb to an average $5,135 a tonne in 2010, driven by Chinese demand and growing optimism in the economic recovery - Reuters poll. [ID:nSP489606] (Reporting by Chris Kelly; Editing by Walter Bagley)
