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Europe’s Growing GDP Helps Gains of Copper & Crude

May 13, 2011 at 20:18 by Vladimir Vyun

Copper and crude oil gained today as the European economy grew more than expected in the first quarter of this year. The gross domestic product of the Eurozone expanded 0.8 percent in the first quarter of 2011, compared to forecasts of 0.6 percent growth. The German GDP increased by 1.5 percent, while analysts predicted 0.9 percent increase. The French GDP posted growth by 1.0 percent instead of expected 0.6 percent.

Growing economy is good for both copper and oil as it increases demand for raw materials. Copper is used in construction and various industries, while oil is consumed as a source of energy and fuel. The credit crisis in Europe still threatens the economic recovery, though, and may stem gains of commodities.

July futures for delivery of copper rose $0.013 (0.3 percent) to $3.9835 per pound by 13:10 on COMEX. The metal gained 0.2 percent during this week. June futures for crude oil delivery went up $0.68 $99.65 per barrel on NYMEX. Prices for crude advanced 2.5 percent over this week.

If you have any questions and comments on the commodities today, use the form below to reply.

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