Copper prices jump the most in three weeks

Positive employment report take prices higher Copper prices jumped by the most in three weeks at Comex on Friday, 03 August 2012 after data showing U.S. employers hired more workers than expected last month deflated the dollar and boosted prices of the red metal. But an increase in the jobless rate to 8.3% reminded investors of the still-fragile state of the world's largest economy and kept prospects of further monetary stimulus from the Federal Reserve on the table. At London Metal Exchange (LME), three-month copper rose $115, or 1.6% to end at $7,445 a tonne on Friday. At Comex, September copper gained 8 cents, or 2.3%, to $3.37 a pound. Copper ended the week down nearly 2%, however. A strong nonfarm payroll report combined with a positive ISM Services print supported the day's gains. Nonfarm payrolls came in at 163K versus the expected 100K while nonfarm private payrolls added 172K against expectations of a 105K increase. The unemployment rate of 8.3% ticked up from its previous reading of 8.2%. The July ISM Services index was reported at 52.6, slightly above the 52.3 expected, and up from June's 52.1 reading. The ECB's inaction added to gloom over dismal manufacturing sector reports from China, Europe and the United States this week, with only a small gleam of improvement seen in China's small- and medium-sized private sector companies. China is the world's top copper consumer, accounting for around 40% of global demand for the metal used in power and construction.