LONDON - Copper rose around 1 percent on Friday, as investors awaited key U.S. jobs data for further clues on the economic recovery but rising inventories amplified demand concerns to restrict gains. By 1100 GMT, copper for three-month delivery on the London Metal Exchange rose to $6,597 a tonne from $6,530 at the close on Thursday and compared with a session high at $6,620.
U.S. October non-farm payrolls data, due at 1330 GMT, is expected to highlight the strength of the economic recovery, and give a clear direction to the dollar.
Economists polled by Reuters forecast a loss of 175,000 jobs in October, sharply below the 263,000 jobs cut in the previous month.
“It’s a closely watched figure,” said Leon Westgate at Standard Bank. “The figure will come out either good, bad or indifferent, the currencies will react and base metals follow suit.”
A weak U.S. currency makes commodities priced in the unit less expensive for holders of other currencies. Improving macro data has helped support copper, used in power and construction, in recent sessions, analysts said.
This includes better-than-expected U.S. jobless claims and non-farm productivity data released on Thursday.
“Global recovery is well underway and the big issue should now be the rate and speed of its continuation rather than when will the bubbles burst?” RBC Capital Markets said in a note.
“Emergency measures put in place by government and private companies alike are definitely showing signs of success as quarterly results and fundamental economic data on a global basis continue to beat estimations.”
Stocks shadow
LME copper stocks continue to rise however, indicating demand has yet to recover outside China, the world’s largest metals consumer and driver for metal prices this year.
The latest data showed stocks rose 5,750 tonnes to total 385,575 — their highest level since early May.
Copper stocks in warehouses monitored by the Shanghai Futures Exchange rose 1 percent from a week earlier to 104,275 tonnes, the highest since late April, 2004. “Fundamentals remain uncertain,” said Francois Lauras, credit analyst at Moody’s. “Demand has been supported by China but ... the Western economies haven’t really picked up.”
Aluminium rose $9 to $1,934. LME stocks in the metal, used in transport and packaging, eased 3,275 tonnes to 4.54 million tonnes.
