Copper hits highest in 8 weeks

Reuters

Melbourne

London copper edged to its highest in almost eight weeks on Wednesday as investors bet on more global stimulus measures after Britain´s shock vote to leave the European Union.

European leaders told Britain on Tuesday to act quickly to resolve the political and economic confusion unleashed by its vote last week, after the IMF said the uncertainty could put pressure on global economic growth.

"Major central banks are ready for more easing measures to stabilize markets," Argonaut Securities said in a note.

"Against this backdrop, declining inventories in steel, coal and copper in the Chinese domestic market and ongoing capacity reduction campaigns may support further increase in most commodity prices despite weak seasonal demand.  "Three-month copper on the London Metal Exchange had inched up 0.2 percent to $4,824 a tonne by 0118 GMT, having earlier struck its strongest since May 5 at $4,831.50, following 2.3-percent gains in the previous session.