Jun 15, 2012 (Dow Jones) NEW YORK--Copper futures advanced for the third straight session Friday on rising hopes that central banks could juice the global economy with further stimulus.
The most actively traded contract, for July delivery, was recently rose 2.75 cents, or 0.8%, to $3.3820 pound on the Comex division of the New York Mercantile Exchange.
Futures were bolstered by a report that central banks are prepared to act to provide liquidity if elections in Greece Sunday trigger market chaos.
Base metals were jittery but "rumors of a concerted central bank effort to inject liquidity in the system brought some respite from the gloom," analysts at RBC Capital Markets said in a report.
Markets have their eyes on the Greek elections amid fears that the results could lead the country to exit the euro zone, deepening the crisis that has gripped the currency union and slowed economic growth.
European Central Bank President Mario Draghi indicated the central bank was ready to respond by providing liquidity if needed. The Bank of England also said it would flood its banking system with liquidity if needed to calm markets.
Copper often moves in tandem with the broader economic outlook because the metal is used in a variety of growth-sensitive applications, from manufacturing to construction to autos.
The metal was also underpinned by a stronger stock-market open in New York. The Dow Jones Industrial Average was recently 0.5% higher at 12,717, also rising on the back of stimulus hopes.
The expectations appeared to overshadow a dismal reading on U.S. manufacturing activity. Industrial production in the U.S. unexpectedly fell in May, the Federal Reserve said, down 0.1% compared with expectations for a 0.1% increase.