Copper climbed to a highest level in two weeks after the U.S. Senate endorsed an accord aimed at preventing a debt default in the world’s second-largest user of the metal.
Copper for delivery in three months on the London Metal Exchange increased as much as 0.6 percent to $7,300 a metric ton, the highest since Oct. 3, and traded at $7,283.75 at 9:05 a.m. Shanghai time.
The Senate voted 81-18 to halt the government shutdown and raise the U.S. debt limit, moving one step closer to ending the nation’s fiscal impasse. The House of Representatives plans to vote later tonight and President Barack Obama supports the agreement. The Senate acted the day before U.S. borrowing authority was scheduled to lapse.
“The accord ended short-term risk in the copper market and triggered some short-covering this morning,” said Yu Yi, an analyst with SDIC CGOG Futures Co. in Beijing. Short-covering refers to investors reversing bets on further declines.
Stockpiles tracked by the LME fell for 30th straight days to 502,750 tons yesterday, the lowest since March 7, daily exchange figures showed.
Copper for delivery in January advanced 0.7 percent to 52,590 yuan ($8,621) a ton on the Shanghai Futures Exchange. Metal for delivery in December rose for a sixth straight day, climbing 0.3 percent to $3.318 a pound on the Comex in New York.
On the LME, tin, aluminum, lead and zinc also rose, while nickel fell.