Source: Reuters.com                    Date: 04 August, 2010

Industrial metals began the new trading month on solid footing on Monday, with copper soaring to its loftiest level since April, as investors grew more optimistic about the economic outlook, especially in the Western world economies.  "The markets are seeing a little bit better-than-expected strength in Western economies, and they are just taking that and getting exuberant ... possibly irrational," said an analyst.

On the London Metal Exchange, copper for three-months delivery ended up USD212 at USD7,510 a ton, its highest since April 29.  Economic sentiment received a broad dose of optimism in global markets and as the dollar weakens, the market is relieved that the European numbers are quite good. "The worst seems to be behind us, but we're not out of the woods completely ... with uncertainty in demand, I would go for metals with a supply constraint," said an analyst.

Copper inventories, seen by some as indicating demand trends, fell 425 tons on Monday, with overall stocks standing at 413,075 tons, their lowest since mid-November.