Oil, copper, gold rise on debt deal
Kuala Lumpur, October 27, 2011
Commodities rose on Thursday, led by crude oil and metals, after European leaders reached a deal with private holders of Greek debt to write down half their holdings.
Brent crude rose for the first time in three days, spot gold climbed to the highest in more than a month and copper on the London Metal Exchange increased for a second day, headed for its biggest monthly gain in 10 months.
"The headlines provide some solace to markets," said Thomas Lam, Singapore-based group chief economist at OSK-DMG, a venture between OSK Holdings and Deutsche Bank.
"Broadly, it's still a very incomplete picture. There's the question of how long it would take to iron out this plan."
Brent jumped $1, or 0.9 percent, to $109.91 a barrel at 0349 GMT. US oil climbed $1.56, or 1.7 percent, to $91.76 a barrel.
Asian stocks rose and the euro strengthened against the dollar. MSCI's broadest index of Asia Pacific shares outside Japan rose nearly 2 percent to its highest level since September 12, while the dollar fell 0.5 percent against a basket of major currencies.
A weaker dollar makes commodities priced cheaper for holders of other currencies.
Three-month copper on the London Metal Exchange rose 1.7 percent to $7,813.25 a tonne, after rising 2 percent and touching a one-month high in the previous session. The metal is also being supported by labour disputes at two Freeport MacMoRan Copper & Gold mines that led to a declaration of force majeure at the company's Grasberg mine on Wednesday.
Spot gold rose 0.3 percent to a one-month high of $1,728.11 an ounce, heading for its fifth session of consecutive gains, the longest winning streak in more than two months. Data on Wednesday showed demand for a range of long-lasting US-made goods rising at the fastest pace in six months in September and new homes sales for the same period the strongest in five months. - Reuters