03 SEPTEMBER 2014www.bloomberg.com
Aluminum leads metals higher on stimulus bets for China, Europe
Edited by : AL CIRCLE
2 min read
Aluminum led most industrial metals higher as worse-than-expected manufacturing data in China and the euro area increased speculation of more economic stimulus.
Aluminum on the London Metal Exchange rose as much as 0.6 percent. China’s official purchasing managers’ index for August declined for the first time in six months while a private PMI reading for the euro area fell to 50.7 in August from 51.8 in the previous month, data released yesterdays show. A reading above 50 signals expansion.
“The market started factoring in more stimulus,” Gavin Wendt, founder and senior resource analyst at Mine Life Pty, said by phone from Sydney. “In these sorts of market conditions, the release of bad news can actually spur the market because there’s the anticipation of certain stimulus.”
A Markit Economics Purchasing Managers’ Index reading for the U.S. will show 58 for August, according to a survey of economists by Bloomberg News before data released today. That matches a preliminary reading on Aug. 21 that showed it jumped to the highest since April 2010.
Aluminum for delivery in three months reached as high as $2,106.75 a metric ton and was up 0.4 percent at $2,102.50 at 10:35 a.m. in Hong Kong. Zinc rose as much as 0.5 percent to $2,369 a ton.
Copper in London was up 0.3 percent at $6,960.25 a ton. In New York, the contract for December was down 0.1 percent at $3.1585 a pound, while in Shanghai futures for October gained 0.6 percent to 49,930 yuan ($8,127) a ton.
On the LME, lead advanced while nickel and tin were little changed.
Aluminum on the London Metal Exchange rose as much as 0.6 percent. China’s official purchasing managers’ index for August declined for the first time in six months while a private PMI reading for the euro area fell to 50.7 in August from 51.8 in the previous month, data released yesterdays show. A reading above 50 signals expansion.
“The market started factoring in more stimulus,” Gavin Wendt, founder and senior resource analyst at Mine Life Pty, said by phone from Sydney. “In these sorts of market conditions, the release of bad news can actually spur the market because there’s the anticipation of certain stimulus.”
A Markit Economics Purchasing Managers’ Index reading for the U.S. will show 58 for August, according to a survey of economists by Bloomberg News before data released today. That matches a preliminary reading on Aug. 21 that showed it jumped to the highest since April 2010.
Aluminum for delivery in three months reached as high as $2,106.75 a metric ton and was up 0.4 percent at $2,102.50 at 10:35 a.m. in Hong Kong. Zinc rose as much as 0.5 percent to $2,369 a ton.
Copper in London was up 0.3 percent at $6,960.25 a ton. In New York, the contract for December was down 0.1 percent at $3.1585 a pound, while in Shanghai futures for October gained 0.6 percent to 49,930 yuan ($8,127) a ton.
On the LME, lead advanced while nickel and tin were little changed.
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