Copper prices in Shanghai and London surged to 10-1/2-month highs on Thursday, fuelled by comments from the US Federal Reserve that the world's largest economy was levelling out and positive European economic data. Amid the broad rally, the three-month nickel contract on the London Metal Exchange rose more than 5 percent to $20,700 a tonne, its highest since late August last year.
The Federal Reserve made its clearest statement to date that it sees the recession nearing an end, and kept its benchmark short-term interest rate steady near zero while extending the duration, but not the size, of the Treasury purchase programme.
Shanghai's benchmark third-month copper futures contract rose 5 percent from the previous day's settlement to 50,340 yuan a tonne in early trade, before easing to 50,070 yuan tonne. The most-active Shanghai contract for November delivery rose 5 percent to 50,020 yuan. Earlier it hit its daily upside limit of 50,280 yuan a tonne. Copper for three-month delivery on the London Metal Exchange gained 2.4 percent to $6,340 a tonne by 0641 GMT, easing from $6,355, its highest since October 1, 2008.
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