Chile’s Cap Advances to Two-Week High as Metals Climb (Update1)

By James Attwood and Nathan Gill

     Dec. 17 (Bloomberg) — Cap SA rose to the highest in two weeks in Santiago trading as an increase in global metals prices eased concerns over waning demand for the iron-ore and steel products that the company produces.
     Cap gained 1.6 percent to 7,150 pesos, the highest since Dec. 2. The stock has lost almost half of its value in the last three months along with tumbling commodity prices and slowing global demand.
     The U.S. dollar fell against the euro after the Federal Reserve cut its target interest rate, boosting demand for commodities. Most industrial metals on the London exchange rose. The Bloomberg Base Metals 3-Month Price Commodity Index climbed 0.7 percent.
     “Commodities are reacting to the Fed’s announcement yesterday,” Carla Araya, an analyst at Euroamerica Corredores de Bolsa SA, said by phone from Santiago. “In general commodities have been punished a lot. This decision gives a push to all commodities because it is a stimulus to growth and, through that, demand.”

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