(Bloomberg) — Copper soared to a fresh two-year high on Friday, bolstered by promising news on coronavirus vaccines that could halt impending lockdowns and hasten economic recovery.
Pfizer Inc. and BioNTech SE said they plan to file for emergency use on Friday, allowing for the vaccine which is 95% effective to be used in the U.S. in the next month. The advance comes as the rampaging virus prompts governments to impose further restrictions to stem the spread, posing a threat to global growth.
Copper, considered an economic barometer, is heading for an eighth straight monthly gain, the longest run in almost a decade, as rebounding growth in China and signs of progress in developing a Covid-19 drug buoy demand prospects. Investors are also betting on a boost from spending on green infrastructure following the five-year plan hammered out by China, as well as alternative-energy initiatives outlined by U.S. President-elect Joe Biden.
“Positive news for the metals is compounding and copper is gaining momentum,” RJO Futures senior market strategist Peter Mooses said by phone. “Base metals have been driven by bullish news all around, and a vaccine is just what the market is looking for: a long-term solution to fears for further disruptions to a global recovery.”
As coronavirus infections surge worldwide, fears of further near-term disruptions to supply are also fueling gains. At a copper mine in Chile, workers at Lundin Mining Corp.’s Candelaria pushed a strike into a second month, as operations remained at a standstill.
“As we see cases increase, we