Investors returned to the metals and mining sector in a big way on Wednesday after good news from the world’s two largest economies and metals consumers.
Yesterday, Chinese leaders paved the way for a raft of measures to stimulate the country’s slowing economy while growth figures in the US, although modest came in ahead of expectations.
On the Comex market in New York copper for delivery in March climbed 1% to $2.13 a pound or just under $4,700 a tonne. The red metal is up more than 6% from a six-year low hit a month ago. The benchmark price of iron ore consolidated its rebound from near decade lows to exchange hands for $40.20 a tonne, an 8.6% advance over two weeks.
Nickel, lead, zinc and aluminum all gained while crude oil was the top performer with the US benchmark price jumping more than 4% to $37.66 a barrel.
Iron ore and copper are seen as bellwethers for the sector and the brighter prospects convinced some investors that the sell-off in mining stocks had been overdone. There was a broad advance among mining’s heavyweights led by top copper producer Freeport McMoran and two of the biggest losers this year – Glencore and Anglo-American.
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