Copper, Aluminum Rise in London as Dollar Slumps: LME Preview

Nov. 22 （Bloomberg） -- Copper advanced in London as the dollar weakened. Aluminum and zinc also gained.

Market News:

-- Ireland sought international aid, becoming the second euro country to need a rescue as the cost of saving its banks threatened a rerun of the Greek debt crisis that destabilized the currency.

-- The euro strengthened, Asian stocks gained for a third day and U.S. index futures advanced amid optimism an agreement to rescue Ireland’s banks will prevent contagion across European debt markets. Bond risk declined.

-- Oil rose, rebounding from its biggest weekly loss in three months.

-- Consumer spending probably picked up in October and factories took more machinery orders, showing the U.S. recovery strengthened entering the final quarter of 2010, economists said before reports this week.

-- The economy in the U.S. will fail to strengthen in 2011 as companies limit hiring and consumers curb spending, according to the median forecast of 51 economists surveyed by the National Association or Business Economics from Oct. 21 to Nov. 4.

Metals News:

-- Gold’s 23 percent surge this year to a record is proving no deterrent to George Soros, John Paulson and Paul Touradji, whose investments signal more gains for the longest winning streak in at least nine decades.

-- Anglo American Plc and Xstrata Plc’s Collahuasi mining unit said 80 of 1,551 unionized workers signed a wage contract offer as of Nov. 19, according to company spokeswoman Bernardita Fernandez.

-- Codelco, the world’s largest copper producer, said Nov. 20 it reached an agreement with unions at its Norte division over job layoffs.

-- Silver-coin sales will climb as investors seek to protect their wealth from weakening currencies, according to the Perth Mint, producer of about 6 percent of the world’s gold bullion.

-- Palladium, gold and silver will extend their rallies next year and investors should remain overweight in precious metals, which will outperform farm products including sugar, according to Societe Generale SA.

-- Nickel Asia Corp., the largest Philippine nickel producer, rose as much as 29 percent in its Manila trading debut after the company’s President Gerard Brimo said it’s in talks with investors in its copper and gold prospects and it may add up to two nickel mines by 2013.

--Editors: Dan Weeks, Stuart Wallace.