Shanghai copper surges

The most-traded March copper contract on the Shanghai Futures Exchange rose 0.92 percent to close at 57,980 yuan ($9,300) a tonne on Monday after data showed China's factory output growth accelerated to eight-month highs in November, but lingering worries that the euro zone may return to recession next year kept a lid on gains.
Signs of renewed vigour in China's factories have brightened the demand outlook for industrial metals, while glimmers of improvement from sectors of the US economy, such as housing and jobs, are also acting to underpin prices. China is the world's top consumer of metals. "We've been gathering signs that things in China are going to stabilise and hopefully improve in the year ahead. So the outlook is looking a little bit more favourable for industrial metals," said Alexandra Knight, an economist with National Australia Bank in Melbourne.