Shanghai copper surges

The most traded copper contract on the Shanghai Futures Exchange settled 1.8 percent higher at 41,160 yuan ($6,589) a tonne on Wednesday, helped by prospects of fresh economic stimulus in China. "Copper made a strong showing after Tuesday's (London) session though some profit-taking was inevitable," said a trader in Sydney. The benchmark contract initially traded lower in Asia, which traders said was a reaction to the early retreat in oil prices, before rallying for short period.
"Oil at the start took some wind out of copper's sails before the momentum driven by short-covering (in copper) overnight kicked in," the trader said. The early February rally in copper reverses a slump in January, when prices dropped almost 13 percent, reflecting in part broad-based index selling led by oil. Still, copper prices remain vulnerable to signs of rising supplies. LME stocks have risen by more than a third this year.