Industrial Metals Surge on European and Chinese News

25 Oct 11

Copper and nickel prices have led the biggest surge in prices in three years as Europe moves towards resolving it's debt crisis and manufacturing in China strengthens.

“Most markets seem to be relieved by the progress made over the weekend by European leaders,” Edward Meir, a senior commodity analyst at MF Global Holdings Ltd. in Darien, Connecticut, said in a report. Industrial metals are “also teeing off somewhat disproportionately” on Chinese manufacturing, he said.

Europe's political leaders have outlined plans to support the region's banks and have ruled out further borrowing from the European Central Bank to boost a rescue fund.

Chinese manufacturing is expected to have expanded during the month, based on a preliminary purchasing-managers' index therefore ending the longest period of contraction since 2009.

On the London Metals Exchange:

Copper has risen 6.9 per cent
Nickel has risen 6.4 per cent
Zinc has risen 3.9 per cent
Aluminium has risen 4.4 per cent
Lead has risen 5.4 per cen