Base metals extend biggest rally since 2009

Industrial metals rose for a second day in London, extending the biggest rally in two years, as figures showed manufacturing might swell in top global consumer China. Chinese manufacturing may expand in October for the first time in four months after a preliminary index of purchasing managers released by HSBC Holdings Plc and Markit Economics on Monday climbed to 51.1 from September’s final reading of 49.9. Metals also gained as Japanese exports increased more than estimated by economists surveyed by Bloomberg News. Copper for three-month delivery advanced $209, or 2.9 per cent, to $7,354 a tonne by 10:11 am on the London Metal Exchange (LME).

The LME Index of the six main metals traded on the exchange increased 4.7 per cent, the most since August 2009, on October 21. Copper for December delivery rose 3.1 per cent to $3.3235 a pound on the Comex in New York. European leaders ruled out tapping the European Central Bank’s balance sheet to boost the region’s rescue fund and outlined plans to aid banks, inching toward a revamped strategy to contain the Greece-fueled debt crisis.