Base metal prices vault to new highs

Copper hit a fresh 10-month high yesterday, leading other base metals to multi-month peaks, as fresh data suggested the global recession was easing, spurring hopes of a recovery in demand and sending the dollar lower.

Brokerage CLSA's China purchasing managers index rose to a one-year high of 52.8 in July, confirming official PMI data over the weekend that indicated an expansion in manufacturing, while US gross domestic product numbers on Friday showed the world's largest economy shrank by less than expected in the second quarter.

The greenback sank to its lowest point this year against a basket of currencies, making dollar-priced commodities cheaper for holders of other currencies.