By Joe Richter - Jan 18, 2012 11:16 AM PT
Copper futures rose to a 17-week high as reports showing gains in U.S. manufacturing and homebuilder sentiment bolstered prospects for metal demand.
Factory output rebounded in December, climbing the most in a year as production of business equipment, automobiles and construction materials rose, figures from the Federal Reserve showed today. A National Association of Home Builders/Wells Fargo gauge showed homebuilder confidence rose in January to the highest in more than four years. Stocks rose, driving the Standard & Poor’s 500 Index to a five-month high.
“The U.S. economic data is supporting equities, and copper is moving with that,” Adam Klopfenstein, a market strategist at Archer Financial Services Inc. in Chicago, said in a telephone interview. “Any time you see positive news out of the housing sector, that’s bullish for copper.”
Copper futures for March delivery gained 0.6 percent to settle at $3.7525 a pound at 1:19 p.m. on the Comex in New York. Earlier, the price reached $3.7595, the highest for a most- active contract since Sept. 21.
On the London Metal Exchange, copper for delivery in three months climbed 0.5 percent $8,239 a metric ton ($3.74 a pound). Earlier, the price fell as much as 1 percent after the World Bank cut its forecast for global economic growth.
Zinc, lead and tin also advanced in London, while nickel and aluminum fel