Copper Prices Surge as ECB Eases European Sovereign Debt Worries

Copper futures jumped sharply on September 15, 2011, after the European Central Bank announced a coordinated push to add liquidity into Europe's banking system, easing concerns about a looming liquidity crunch and European sovereign debt contagion. The move boosted confidence in the economic recovery, driving up the price of industrial metals like copper. Copper, widely used in construction and manufacturing, had been under pressure due to fears that Europe's debt crisis would stymie demand for the metal.

Key Takeaways:

Copper futures rose 5.90 cents, or 1.5%, to settle at $3.9570 a pound on the Comex division of the New York Mercantile Exchange, marking a new high above the previous settlement price of $3.8980.
The ECB's announcement led to a surge in copper prices, with the contract setting its day's highs at $3.9800, a significant increase from Wednesday's settlement price.
Copper futures roared to a high of $3.9800 a pound as traders flocked to purchase the industrial metal after the ECB announcement.
Thinly traded September-delivery copper gained 6.00 cents, or 1.5%, to settle at $3.9450 a pound.
The European Central Bank's move is seen as a positive development for the economic recovery, with industrial metals like copper benefiting from the boost in confidence.

Statistics:

Copper futures rose 5.90 cents, or 1.5%, to settle at $3.9570 a pound on the Comex division of the New York Mercantile Exchange.
The contract set its day's highs at $3.9800, a significant increase from Wednesday's settlement price of $3.8980.
Thinly traded September-delivery copper gained 6.00 cents, or 1.5%, to settle at $3.9450 a pound.
Copper prices had been under pressure due to concerns about European sovereign debt contagion and its impact on demand for the metal.

Sources:

Dow Jones Commodities News via Comtex (Sep 15, 2011)
Dow Jones Newswires (Tatyana Shumsky, 212-416-3095, tatyana.shumsky@dowjones.com)