By Millie Munshi
Jan. 9 (Bloomberg) -- Copper futures rose, heading for a second weekly gain, on speculation that U.S. government spending will help end a recession that eliminated more jobs last year than at any time since World War II.
A government report today showed the U.S. employers cut 524,000 jobs in December, or 1,000 less than the median estimate in a Bloomberg survey and lower than a forecast from ADP Employer Services made on Jan. 7. Copper prices are up 3.5 percent this week on speculation President-elect Barack Obama will spur growth and job creation with a $775 billion stimulus plan after he takes office this month.
“Industrial metals are getting support as the jobs report didn’t give us any significant surprises,” said Frank McGhee, the head dealer at Integrated Brokerage Services LLC in Chicago. “The market is looking forward to the injection of funds from the stimulus package and is hoping for a recovery in the economy.”
Copper futures for March delivery added 3.2 cents, or 2.2 percent, to $1.511 a pound at 9:11 a.m. on the New York Mercantile Exchange’s Comex division. The price jumped 12 percent last week.
Obama yesterday urged Congress to act quickly on his stimulus package. The plan will include spending on infrastructure such as roads and electrical grids, boosting demand for copper and other metals, McGhee said.
On the London Metal Exchange, copper for delivery in three months climbed $121, or 3.8 percent, to $3,316 a metric ton ($1.50 a pound). The price reached a record $8,940 on July 2.
To contact the reporter on this story: Millie Munshi in New York at mmunshi@bloomberg.net
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