Copper futures climbed Wednesday as investors bet European leaders were close to a credible plan to tackle the euro-zone debt crisis, easing worries that the region's financial struggles would cut demand for industrial metals.

The most actively traded copper contract, for December delivery, was recently up 14.2 cents, or 4.2%, at $3.5625 a pound on the Comex division of the New York Mercantile Exchange. Futures rose as high as $3.585 a pound, the highest intraday price since Sept. 22.

Copper extended its earlier gains Wednesday as German lawmakers approved an expanded mandate for the euro zone's bailout fund. The news wasn't unexpected, but it raised hopes that the summit of European Union leaders later in the day would result in a plan likely to ease the risk of a credit crunch in the currency union.

The euro surged to a six-week high against the U.S. dollar after the news, easing the pressure on dollar-denominated copper futures. A weaker greenback makes the futures cheaper for buyers using other currencies.

Copper futures have largely tracked developments in the euro zone, as a worsening debt crisis there could rattle industrial markets. The metal is sensitive to the growth outlook because of its widespread uses across industries.

"Although supply-side developments are very supportive for copper prices, investors are more concerned with demand prospects at this stage," MF Global analyst Edward Meir said in a note.

Supply developments were again supportive Wednesday, as Freeport-McMoRan Copper & Gold Inc. (FCX) invoked force majeure, a contract provision allowing it to suspend shipments from its Grasberg mine in Indonesia. The ongoing labor strike there has "impacted our ability to fully perform our sales commitments," said Ramdani Sirait, a spokesman for Freeport's Indonesian subsidiary.

Copper prices were supported for much of the last year by the view that copper supply would fall short of rising global demand.

-By Matt Day, Dow Jones Newswires; 212-416-4986; matt.day@dowjones.com

--Deden Sudrajat contributed to this article.

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