Mining company Freeport-McMoRan Copper & Gold Inc. (FCX) rose on Wednesday as copper prices were propped up by good news on three separate fronts.
China continued reporting stellar trade data, on Tuesday reporting that industrial output rose 10.4 percent. While China bears have been calling for Chinese growth to eventually taper off, the world's most populous nation has continued to surprise with a string of positive reports. Coupled with growth in industrial output, trade data showed overall imports and exports were growing at faster clip than expected.
Secondly, the increased possibility of the US not intervening in Syria comforted investors, who were calmed by assurances from Secretary of State John Kerry that chemical weapons disarmament would drastically reduce the chance of the US staging a strike in Syria. This proposal from Kerry seems to have been taken to heed, with Syria agreeing to relinquish their chemical weapons stockpile. The diminished threat of a major conflict in Syria assuaged investor fears that the global economy would be shaken by an American strike, and renewed hope that the worldwide economic recovery currently taking place could continue.
Lastly, a decline in copper stockpiles further contributed to the slight uptick in copper prices. Copper for December delivery edged up to hit $3.27 a pound before settling back down to around $3.23 a pound.
Copper has risen 8 percent since hitting a three-year low in June amid the worst fears that a conflict in Syria was imminent and China would begin an economic slowdown. For the time being, those fears have been alleviated, and copper is mounting a comeback.
Freeport-McMoRan is the largest producers of copper in the world, and their stock jumped on the positive developments and optimistic outlook. The S&P 500 company was up 2.82 percent to hit $32.83 a share.
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