Mining shares surge, with Antofagasta jumping as much as 19%.
President-elect Donald Trump promised to revitalise America’s aging airports, roads and bridges, and investors are betting he’s going to need a lot of copper.
Since Trump’s surprise victory yesterday, copper surged 8.1%, heading for the biggest two-day gain in more than five years. And it’s not the only winner, with lead, zinc and aluminum advancing along with the companies that produce them.
“All that we see for President-elect Trump is that he will focus on building, he will focus on the infrastructure,” said Tom Albanese, a New Jersey native and chief executive officer of Vedanta Resources. “That is what the market is reacting to.”
Trump vowed during the presidential campaign to at least double Hillary Clinton’s estimated $275 billion, five-year building plan. In his acceptance speech yesterday, the real estate mogul said infrastructure would become “second to none” and millions of people will be employed by the projects.
Copper for delivery in three months jumped as much as 5.6% on Thursday, touching a 16-month high. It traded at $5 672 a ton as of 10:30am in London. Prices are up 20 percent this year.
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