Copper, Zinc Advance in London on Ireland Bailout: LME Preview

Nov. 29 （Bloomberg） -- Copper gained in London after European governments agreed to a bailout for Ireland, overcoming tensions on the Korean peninsula. Aluminum and zinc also increased.

Market News:

-- European governments sought to quell the market turmoil menacing the euro, handing debt-strapped Ireland an 85 billion- euro （$113 billion） aid package and diluting proposals to force bondholders to cover a share of future bailouts.

-- Asian stocks climbed back from a three-week slump and commodities rose after Ireland won an aid package, overcoming concern that tensions on the Korean peninsula will weigh on growth.

-- The dollar traded near a two-month high against the euro amid speculation more European nations will join Ireland in receiving bailouts and as tensions between North and South Korea escalated.

-- European finance leaders backed a Franco-German compromise on post-2013 sovereign bailouts that waters down calls by German Chancellor Angela Merkel for investors to assume losses and share the costs with taxpayers.

-- The average U.S. shopper spent 6.4 percent more than last year over the Thanksgiving holiday weekend, signaling that the country’s economy, propelled by consumer spending, is regaining strength, the National Retail Federation said.

-- Oil climbed, trading near the highest in 10 days, on speculation steps to quell Europe’s debt crisis will help stabilize the economy and boost fuel demand.

Metals News:

-- China sold all the aluminum ingots it offered from the state reserve at below market prices, according to the result of a tender posted today on the website of the National Development and Reform Commission.

-- The union representing striking workers at Collahuasi, the world’s fourth-largest copper mine, said it is “hopeful” of reaching a wage agreement when talks with the company resume.

-- Rio Tinto Group said demand for some metals, including iron ore and copper, will double over the next 15-20 years.

-- China, the world’s biggest steel producer, boosted its output to 1.607 million metric tons a day on average from Nov. 11 to 20, compared with 1.6 million tons a day during the first ten days of this month, researcher UC361.com said, citing the China Iron and Steel Association.

-- Uranium rose to the highest in more than two years after China Guangdong Nuclear Power Co. agreed on long-term supply with the two largest producers and expectations Asia’s biggest economy will boost its reactor-building targets.

--Editors: Dan Weeks, John Deane.