Copper climbed in London, headed for a third straight weekly gain, as European Union leaders agreed on a plan to contain future debt shocks and German business confidence unexpectedly rose. The euro gained against the dollar for a second day after EU leaders agreed to amend the bloc’s treaties to create a permanent crisis-management mechanism in 2013 and the European Central Bank armed itself with more capital. German business confidence gained to a record in December as stronger domestic demand helped bolster the recovery in Europe’s largest economy. The index of U.S. leading economic indicators probably increased in November, economists said before a report today. The EU summit “seems to be helping to allay concerns regarding peripheral Europe,” said Daniel Brebner, an analyst at Deutsche Bank AG in London. London Metal Exchange volumes “are likely to remain quite low given we are in the holiday season.” Copper for delivery in three months climbed $139, or 1.5 percent, to $9,130 a metric ton at 9:51 a.m. on the LME. Copper for delivery in March added 1.3 percent to $4.1685 a pound on the Comex in New York. All six main metals traded on the LME gained. The Munich-based Ifo institute said its business climate index, based on a survey of 7,000 executives, increased to 109.9 from 109.3 in November. That’s the highest since records for a reunified Germany began in 1991. Economists had predicted a drop to 109. Copper ‘Driving’ “We are still looking for higher numbers,” said Kevin Tuohy, a metals trader at MF Global U.K. Ltd. in London, giving a short-term target for copper of $9,400 to $9,500 a ton and $2,375 to $2,400 a ton for aluminum. “Copper will be driving the other metals.” Metals also gained as the U.S. dollar declined, Tuohy said. The U.S. currency retreated as much as 0.8 percent against a basket of currencies. A slumping dollar makes metals priced in the currency cheaper in terms of other monies and spurs demand for raw materials as an alternative investment. In the U.S., the Conference Board’s gauge of the outlook for the next three to six months rose 1.1 percent, according to the median forecast of 59 economists surveyed by Bloomberg News, the most in eight months and a signal the expansion will strengthen early next year. The measure increased 0.5 percent in each of the previous two months. China Inflation Concerns Copper in London declined the past three days on concern that China may step up measures to curb lending and raise interest rates to stem accelerating inflation. Consumer prices jumped 5.1 percent last month, the fastest rate in 28 months. LME copper stockpiles gained for a fifth day to 361,400 tons today, daily exchange figures showed. They’re down 28 percent this year, on course for the first annual decline since 2004. Orders to draw copper from LME stocks, or canceled warrants, fell 0.8 percent to 18,550 tons. Copper stockpiles in Shanghai monitored by the Shanghai Futures Exchange rose 11,872 tons to 127,836 tons, according to data provided by the bourse today. Copper may rise next week with inventories heading for the first annual decline in six years, a Bloomberg News survey showed. Seven of 16 analysts, investors and traders surveyed by Bloomberg, or 44 percent, said the metal will gain next week. Five predicted lower prices and four forecast little change. Tin for three-month delivery on the LME gained 0.2 percent to $26,200 a ton. Aluminum rose 1 percent to $2,343 a ton and nickel gained 0.2 percent to $24,740 a ton. Lead gained 1.6 percent to $2,402 a ton and zinc added 2.3 percent to $2,272 a ton. To contact the reporter on this story: Maria Kolesnikova in Moscow at mkolesnikova@bloomberg.net To contact the editor responsible for this story: Claudia Carpenter at ccarpenter@bloomberg.net.

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