Exchange traded funds indexed to copper prices and miners have vaulted about 20% in a week with investors turning more bullish on the global economy as Europe tries to make its debt crisis go away.
The iPath Copper ETN (NYSEArca: JJC), First Trust ISE Global Copper Index Fund (NYSArca: CU) and Global X Copper Miners ETF (NYSEArca: COPX) are all more than 20% over the past five trading sessions.
The funds have also busted through their 50-day moving averages during the sharp rebound in prices. [Copper ETFs in Biggest Rally Since 2009]
Copper was rising Thursday after European leaders reached agreements to expand the bailout fund and haircuts on Greek debt. [Debt Deal]
Base metals “are popping on policy news out of Europe indicating that the banking crisis might be taking a breather,” Scott Gardner, chief investment officer at Verdmont Capital, told Bloomberg. “The Chinese have also recently hinted at easing monetary policy, which would be a big boost for the industrial-commodity trade.”
The iPath Copper ETN, which tracks futures, rose nearly 6% on Thursday.
iPath Copper ETN
