It's all looking good.
By Manolo Serapio Jr.
MANILA (Reuters) - Copper hit a 10-month high on Monday as fresh data suggested the global recession was easing, spurring hopes of a recovery in demand and sending the dollar lower.
Brokerage CLSA's China purchasing managers index rose to a one-year high of 52.8 in July, confirming official PMI data over the weekend that indicated an expansion in manufacturing, while U.S. gross domestic product numbers on Friday showed the world's largest economy shrank by less than expected in the second quarter.
The greenback sank to its lowest point this year against a basket of currencies, making dollar-priced commodities cheaper for holders of other currencies.
"The markets are certainly factoring in economic recovery and that's a key reason why we've had these big gains in commodity prices," said David Moore, commodity strategist at Commonwealth Bank of Australia.
"It makes me wonder sometimes about how much upside there is immediately from here, but at present, the markets have been very strong, and it's hard to argue with the markets," added Moore.
Shanghai's benchmark third month copper eased to 47,100 yuan a tonne by 0217 GMT, after surging 7 percent to its ceiling of 48,100 yuan, its loftiest since late September.
The Shanghai metal climbed nearly 11 percent in July, its best showing since March.
Three-month copper on the London Metal Exchange climbed as high as $5,946.75 a tonne, its best level since early October, before easing to $5,880.
Copper August 03,04:24
Bid/Ask 2.6612 - 2.6657
Change +0.0603 +2.32%
Low/High 2.6008 - 2.6870
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