Copper, aluminum rally on Obama plan
Dec 08, 2008 | 12:30 PM
| Anne Riley
Base metals rallied Monday to overcome multiyear lows on news of President-elect Barack Obama's promise to reinvigorate the U.S. economy with a massive infrastructure spending plan, though traders warned that it might be premature to expect any quick rise in physical metal demand.
"That announcement is giving the market the feel-good factor today," one base metals trader said.
In New York, copper for March delivery settled at $1.498 a pound, a 9.1-percent jump from Friday's $1.3735-a-pound close. However, three-month copper, which stumbled to a new 43-month low Friday, slipped slightly in London Metal Exchange trade on Monday. The metal closed second-ring trade at $3,192 per tonne, down 3.7 percent from Friday's close at $3,077 per tonne.
While aluminum market observers said that spending on roads, bridges and school repairs could boost demand in the long-term, they questioned the validity of an immediate bump in pricing. Three-month aluminum closed second-ring trade on the LME at $1,520 per tonne, up 1.9 percent from $1,492 per tonne on Friday.....
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