MARKET TALK: LME Copper Gains, Catches Players Short

London Metal Exchange copper's recovery after the market's 7% sell-off Friday has caught speculators by surprise and may have caught many short, a broker says. Reports that US hedge fund Red Kite was in trouble had forced the liquidation but fears of redemptions appear unfounded, he adds. Copper now "seems to be reversing from Friday's direction," he notes. LME copper trades last at $5,475/ton, up 4% from Friday's low and a 2% gain on Tuesday.