BLBG: Copper Gains in New York, Halting 5-Day Slump, on Bailout Plan
By Millie Munshi
Oct. 3 (Bloomberg) -- Copper rose in New York, halting a five-session slide, on speculation the U.S. House of Representatives will pass a financial-market rescue package that will help revive economic growth.
At least eight House lawmakers now say they would support the $700 billion rescue plan after they voted against the bill earlier this week. On Oct. 1, the Senate approved the measure first proposed by the Treasury. Copper tumbled 16 percent in the previous five sessions on concern that the slumping economy will slash demand for raw materials.
The market ``could be in for a substantial `relief rally' should the House pass the revised proposal,'' Edward Meir, an analyst at MF Global Ltd. in Darien, Connecticut, said in a report.
Copper futures for December delivery rose 1.05 cents, or 0.4 percent, to $2.638 a pound at 9:15 a.m. on the Comex division of the New York Mercantile Exchange.
On the London Metal Exchange, copper for delivery in three months declined $25, or 0.4 percent, to $5,825 a metric ton ($2.64 a pound). Before today, the price dropped 28 percent in the past 12 months.
To contact the reporter on this story: Millie Munshi in New York at firstname.lastname@example.org.