Chicago 12/07/2016 - Copper futures jumped over three percent in the largest intraday move since April 11 with investor risk-on appetite returning following calmer market conditions.
Copper for September delivery on the Comex division of the New York Mercantile Exchange jumped 6.5 cents or 3.1 percent to $2.2125 per pound. Trade ranged from $2.1445 to $2.2250.
Equity markets have stabilised since the major selloff due to the Brexit decision particularly after the selection of Theresa May for prime minister, which helped to lift the pound.
The base metals complex has been a prime beneficiary of the quelled nerves with capital moving away from traditional safe-haven assets like gold and dollar – last trading 0.1 percent softer at $1.1068 against the euro.
Still, the market's fundamentals are little changed - global growth concerns remain, particularly in China, with the country is set to release a swathe of economic figures later this week including its GDP, industrial production, fixed asset investment, retail sales, new loans and money supply.
"[Prices built] on the gains seen yesterday, supported initially by a weaker dollar, improving technicals [and] steady equity indices," Sucden Financial said.
Today the Dow Jones industrial average and S&P were each up 0.8 percent respectively.
Elsewhere, Asian shares rose to a two-and-a-half-month peak this morning following the record day on Wall Street.
In Japan, stocks rallied for a second session - the Nikkei climbed 2.5 percent - after Prime Minister Shinzo Abe's party won the latest election, creating the opportunity for further quantitative easing.
"What we are starting to see is markets getting back to a more normal way of operating and reacting after the last two weeks and people coming round to the idea of what the Brexit decision means for the world economy," a senior trader said.
"The stock markets are rising, the pound has maybe found a floor for now and, with a new government in the UK, things can move forward from here," he said.
In data, NFIB small business index in June came in at 94.5, above the forecast of 94.1 and the previous reading of 93.8. JOLTS job openings in May stood at 5.5 million, slightly below the 5.74 million expectations. Wholesale inventories over the same period ticked up 0.1 percent – an improvement of the 0.2 percent economic consensus.
As for other commodities, light sweet crude (WTI) oil futures on the Nymex were up $2.09 or 4.7 percent at $46.85 per barrel while the most active Comex gold contract was at $1,334.80 per ounce, off $21.80 or 1.6 percent.
(Additional reporting by Martin Hayes, editing by Tom Jennemann)