LONDON- Copper prices bounced on Friday after US jobs data eased fears of a growth slowdown in the United States, while falling inventories in top consumer China reinforced positive sentiment.
Benchmark copper on the London Metal Exchange (LME) was up 0.5 percent at $8,831 a metric ton, after hitting a 4-1/2 month low of $8,714 earlier this week on concern about the contagion effects of a potential recession in the United States.
Americans filing new applications for unemployment benefits fell more than expected last week, data showed on Thursday, suggesting nervousness about the labor market was overblown.
Traders said inflation data showing China taking a step back from deflation also underpinned the improved mood across equities and commodities markets.
“US jobs data lifted sentiment, copper is following equities,” one metals trader said, adding that falling stocks in warehouses monitored by the Shanghai Futures Exchange (ShFE) also provided support.
Copper stocks in ShFE warehouses have dropped 15 percent over the past two months to 286,305.
Hopes for a recovery in China’s copper consumption were highlighted by the Yangshan premium a closely watched indicator of China’s import appetite, rallying to about $55 a ton this week for its highest since March.
