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Dow Jones newswires May 28, 2014 5:30AM
Copper extends 11-week high

Copper rose on Tuesday, extended its 11-week high, as stronger US economic data and hopes of stimulus from the Chinese government bolstered investor outlook on metal demand.
The most actively traded contract, for July delivery, rose 1 cent, or 0.3 per cent, to settle at $3.1775 a pound on the Comex division of the New York Mercantile Exchange. This was the highest settlement price since March 6.
Copper prices have been marching higher in recent weeks, as some investors wagered fears about China's slowing economy were overdone, while others bet that copper demand from the US would pick up as the economy ramped up after a slow winter. Copper is widely used in manufacturing and construction, making its price sensitive to shifts in economic outlook.
On Tuesday, copper prices caught an added boost after one report showed that US consumer confidence rose in May while another said that US durable goods orders rose 0.8 per cent in April, bucking calls for a 0.7 per cent drop.

"That's good news for the copper market," said Ira Epstein, director of the Ira Epstein division at the Linn Group.
Mr Epstein said that expectations of a pick up in business activity had turned many investors bullish on industrial metals including copper.

The US is second after top copper consumer China in the global ranks of copper demand, and investors closely follow economic data from both countries for clues about future copper purchases.
Copper traders also continued to mull the likelihood that China would enact fresh stimulus measures to support its slowing economy. On Friday, Chinese Premier Li Keqiang said in a statement that the country's economy remains under stress and that governments at all levels should fast-track development.

"You're getting more and more bullish news out of China," said Charles Nedoss, a senior market strategist with LaSalle Futures in Chicago.
China accounts for about 40 per cent of the world's copper demand, with much of that metal heading to feed the country's manufacturing and construction sectors.