Glencore gains as China data lifts copper

As copper prices came off their four-month lows thanks to anticipation of improved Chinese demand, Glencore was lifted to the top of the FTSE 100 on Wednesday morning.

London prices for the red metal tested three-week highs as China's factory output and retail sales increased faster than expected in August, while US household income data showed a record increase after long-term stagnation.

As a copper proxy, commodities giant Glencore is set to benefit.

Analyst Mike van Dulken at Accendo Markets said Glencore shares were also helped by technical signals, "intersecting support at 175p dating back to April’s lows proving the platform for the latest bounce".

On copper prices, he said the latest leg up maintains the 2016 trend of rising lows from the January depths of the global commodity rut, with the supportive China data overrode dollar strength that normally serves to hinder.

He noted that copper was challenging a "bugbear two-month trend" of falling highs.

"Copper as the barometer of choice could thus be providing an early bullish reversal signal. Bulls will now be hopeful that the breakout holds up and that $4800, maybe even $5000 can be revisited."