Investing.com - Copper futures rose to a four-week high during European morning hours on Tuesday, as appetite for riskier assets after euro zone finance ministers reached a deal on new debt targets for Greece, paving the way for the debt-stricken country to receive its next installment of aid.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.561 a pound during European morning trade, up 0.35% on the day.
New York-traded copper prices rose by as much as 0.5% earlier in the day to hit a session high of USD3.565 a pound, the strongest level since November 1.
Euro zone finance ministers, the European Central Bank and the International Monetary Fund reached an agreement in a meeting that wrapped up early Tuesday in Brussels to reduce Greece’s debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020.
Other measures included an extension of loan maturities, a cut in the interest rates that Greece is paying on the loans from its international partners, as well as a debt buyback.
Athens was also cleared to receive a much-needed EUR34.4 billion loan installment in December, easing fears over a messy near-term default and potential exit from the euro zone.
Eurogroup Chairman Jean-Claude Juncker said euro zone ministers would formally approve the release of the aid payment on December 13.
However, market players remained cautious as the latest agreement does not offer a fundamental resolution to the euro zone's debt crisis.
Copper prices found additional support after data released earlier by the National Bureau of Statistics showed Chinese industrial profits rose 20.5% in October from a year earlier, much stronger than the 7.8% increase in September.
The data added to signs of growth recovery in the world’s largest copper consumer.
Meanwhile, markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Republicans in the U.S. Congress on Monday called on President Barack Obama to detail long-term spending cuts to help solve the country's fiscal crisis, while holding firm against the income tax rate increases for the wealthy that Democrats seek.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline.
Elsewhere on the Comex, gold for February delivery eased down 0.05% to trade at USD1,750.95 a troy ounce, while silver for March delivery declined 0.1% to trade at USD34.19 a troy ounce.
On the Comex division of the New York Mercantile Exchange, copper futures for March delivery traded at USD3.561 a pound during European morning trade, up 0.35% on the day.
New York-traded copper prices rose by as much as 0.5% earlier in the day to hit a session high of USD3.565 a pound, the strongest level since November 1.
Euro zone finance ministers, the European Central Bank and the International Monetary Fund reached an agreement in a meeting that wrapped up early Tuesday in Brussels to reduce Greece’s debt-reduction target by EUR40 billion to 124% of gross domestic product by 2020.
Other measures included an extension of loan maturities, a cut in the interest rates that Greece is paying on the loans from its international partners, as well as a debt buyback.
Athens was also cleared to receive a much-needed EUR34.4 billion loan installment in December, easing fears over a messy near-term default and potential exit from the euro zone.
Eurogroup Chairman Jean-Claude Juncker said euro zone ministers would formally approve the release of the aid payment on December 13.
However, market players remained cautious as the latest agreement does not offer a fundamental resolution to the euro zone's debt crisis.
Copper prices found additional support after data released earlier by the National Bureau of Statistics showed Chinese industrial profits rose 20.5% in October from a year earlier, much stronger than the 7.8% increase in September.
The data added to signs of growth recovery in the world’s largest copper consumer.
Meanwhile, markets participants continued to monitor developments surrounding the looming “fiscal cliff” in the U.S., approximately USD600 billion in automatic tax hikes and spending cuts due to come into effect on January 1.
Republicans in the U.S. Congress on Monday called on President Barack Obama to detail long-term spending cuts to help solve the country's fiscal crisis, while holding firm against the income tax rate increases for the wealthy that Democrats seek.
There are fears the U.S. economy will fall back into a recession, unless a divided Congress and the White House can work out a compromise in the five weeks left before the January 1 deadline.
Elsewhere on the Comex, gold for February delivery eased down 0.05% to trade at USD1,750.95 a troy ounce, while silver for March delivery declined 0.1% to trade at USD34.19 a troy ounce.