Nov. 1 （Bloomberg） -- Copper advanced from London to Shanghai as investors sought alternatives to a declining dollar and as manufacturing accelerated in China, the world’s largest user of industrial metals. Zinc, aluminum and lead climbed.
Three-month-delivery copper rose as much as 1.3 percent to $8,305 a metric ton on the London Metal Exchange, and traded at $8,302 at 11:26 a.m. Singapore time. The metal used in construction and household appliances capped a fourth monthly increase in October as the dollar slumped 1.9 percent against a six-currency basket last month.
“All eyes are on the Federal Reserve meeting this week, what steps they’re going to take in terms of quantitative easing and how the dollar reacts to what they’re going to say,” said Zhang Hai, analyst at China Aviation Futures Co., from Shanghai.
Copper on the Comex in New York added as much as 1.3 percent to $3.7810 a pound, before trading at $3.766. February- delivery metal on the Shanghai Futures Exchange rose as much as 1.9 percent to 63,630 yuan （$9,532） a ton, climbing for the first time in four days.
The dollar dropped for a third day against the euro on expectations the Federal Reserve will increase debt purchases to sustain the recovery in the world’s largest economy.
“China’s PMI is also giving a bullish boost to metals today,” said Zhang, referring to the Purchasing Managers’ Index.
China’s manufacturing rose to 54.7 in October, expanding at the fastest pace in six months, the logistics federation said today. The reading compared with 53.8 for September. The median estimate of 13 economists surveyed by Bloomberg News also forecast 53.8 for October.
Aluminum in London gained 1.4 percent to $2,377, zinc added 2 percent to $2,470.75 and lead rose 1.2 percent to $2,478. Nickel climbed 1.1 percent to $23,250, while tin advanced 1.1 percent to $25,875.
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