Copper Jumps With U.S. Jobs Report Signaling Robust Recovery
(Bloomberg) -- Copper advanced the most in six weeks on signs the U.S. economy will see a strong rebound.
A better-than-expected U.S. jobs report Friday fueled optimism that the world’s largest economy will recover from the pandemic faster than other countries. More vaccinations and fewer business restrictions are supercharging the labor market, with U.S. employers adding the most jobs in seven months in March.
“The jobs report on Friday is certainly a big thing” for copper’s increase, said Peter Thomas, senior vice president at Zaner Group in Chicago. “A lot of copper will be needed” for President Joe Biden’s proposed $2.25 trillion infrastructure plan, which includes measures to boost electric cars that use more of the metal than internal-combustion vehicles.
Debate is in full swing over Biden’s spending proposal, with administration officials and Senate Republicans laying out their positions on Sunday news shows. While Democrats want to go bigger, Republicans may be ready to support infrastructure spending if it’s scaled back by more than two-thirds.
Meanwhile, a weaker dollar is also boosting the metal Monday, as it makes copper more appealing to investors holding other currencies. The Bloomberg Dollar Spot Index fell as much as 0.4%.
Copper for May delivery on the Comex rose as much as 4.1%, the most since Feb. 19, and was trading up 3.9% to $4.147 a pound at 11:09 a.m. in New York. The London Metal Exchange is closed on Monday for the Easter holidays.
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