Mining shares surge as aluminium rise on faster U.S. growth

Mining stocks rose the most in more than 10 weeks in London as aluminium advanced after a report showed the U.S. economy expanded faster than estimated, boosting demand in the second-largest metals user.

The U.S.’s gross domestic product expanded at a revised 2 percent annualized rate, a government report showed on Tuesday, beating the median forecast in a Bloomberg survey calling for a 1.9 percent increase. China, the biggest metals consumer, will add monetary stimulus next year, making good on a pledge to support growth as leaders push through policies to cut overcapacity and reliance on credit, according to economists surveyed by Bloomberg.

“There’s been a lot of short-term borrowing around on aluminium and lead,” Robert Montefusco, a broker at Sucden Financial Ltd., said by e-mail. “The U.S. figure’s good. Chinese demand is still there, expecting national grid demand for copper again next year.”

Glencore Plc, the Swiss commodity trader and miner, was among the three-biggest gainers on the FTSE 350 Mining Index, jumping 7.2 percent to the highest since Dec. 10. Anglo American Plc advanced 6.4 percent while BHP Billiton Ltd., the largest mining company, increased 6.1 percent.

Aluminium for delivery in three months climbed 0.8 percent to $1,519 a metric ton by 11:07 a.m. on the London Metal Exchange after reaching $1,524.50 a ton, the highest since November 27. The LME index of industrial metals is down 25 percent this year, heading for the biggest loss since 2008.