London copper rose on Friday and was set to forge its biggest weekly climb in nine months, as an upbeat U.S. jobs report fired optimism over economic growth.
U.S. employment growth jumped in June and the jobless rate closed in on a six-year low, decisive evidence the economy was growing briskly heading into the second half of the year.
That came after a survey showed that global business activity picked up in June, with new orders pouring in at their fastest rate in over three years.
"We've certainly seen some improvement in terms of macro data, (but) at the same time it's a good idea not to get too carried away" said analyst James Glenn of National Australia Bank in Melbourne.
Glenn said that China's purchasing manufacturing indexes were good but not stellar, while a budding U.S. housing revival, the upbeat labour data and low exchange stocks of metals such as copper and zinc were underpinning prices.
"There is the potential for upside, but prices probably won't move significantly higher," he said.
Three-month copper on the London Metal Exchangehad edged back to $7,163.25 a tonne by 0220 GMT. It earlier rose to a 4-1/2 month high at $7,190 a tonne. Copper prices were targeting a 3.1-percent weekly rise, their biggest advance since September last year.
The most-traded September copper contract on the Shanghai Futures Exchangeclimbed 0.8 percent to 51,320 yuan
($8,300) a tonne, having hit its highest in six months overnight.
Copper stocks in LME warehouses have ticked up in the past few sessions, but still remain close to six year lowsnear 150,000 tonnes.
Across benchmark contracts, volumes were suffering from low liquidity with barely more than 2,000 lots of total turnover.
Operations at some of Chile's largest copper mines were affected to some extent for a few hours by a power outage in the country's mineral-rich north, industry sources said on Thursday, though the actual impact on production could not be quantified.
In other metals, broker Triland said the investor community has rediscovered its appetite for nickel, encouraged by improving economic signs out of the United States.
"A weekly close (Friday) above $20,000 may encourage stainless buyers into the market if nickel prices look like they may be running higher again," it said.
U.S. employment growth jumped in June and the jobless rate closed in on a six-year low, decisive evidence the economy was growing briskly heading into the second half of the year.
That came after a survey showed that global business activity picked up in June, with new orders pouring in at their fastest rate in over three years.
"We've certainly seen some improvement in terms of macro data, (but) at the same time it's a good idea not to get too carried away" said analyst James Glenn of National Australia Bank in Melbourne.
Glenn said that China's purchasing manufacturing indexes were good but not stellar, while a budding U.S. housing revival, the upbeat labour data and low exchange stocks of metals such as copper and zinc were underpinning prices.
"There is the potential for upside, but prices probably won't move significantly higher," he said.
Three-month copper on the London Metal Exchange
The most-traded September copper contract on the Shanghai Futures Exchange
($8,300) a tonne, having hit its highest in six months overnight.
Copper stocks in LME warehouses have ticked up in the past few sessions, but still remain close to six year lows
Across benchmark contracts, volumes were suffering from low liquidity with barely more than 2,000 lots of total turnover.
Operations at some of Chile's largest copper mines were affected to some extent for a few hours by a power outage in the country's mineral-rich north, industry sources said on Thursday, though the actual impact on production could not be quantified.
In other metals, broker Triland said the investor community has rediscovered its appetite for nickel, encouraged by improving economic signs out of the United States.
"A weekly close (Friday) above $20,000 may encourage stainless buyers into the market if nickel prices look like they may be running higher again," it said.
