• Other

    Copper jumps to 15-month peak on soft dollar and China deal

    AnyFans Posted on

    By Reuters

    Copyright brecorder

    Copper jumps to 15-month peak on soft dollar and China deal

    LONDON: Copper prices climbed to their highest in 15 months on Monday after a drop in the dollar and a deal between the U.S. and China on TikTok spurred buying by speculators who brushed off downbeat data from China.

    Benchmark three-month copper on the London Metal Exchange advanced 1.1% to $10,180 a ton by 1600 GMT after touching $10,192.50 for its highest since June 4 last year.

    The U.S. and top metals consumer China reached a framework agreement regarding short-video app TikTok, to be confirmed in a call between the two leaders, giving investors hope that a trade deal is also close.

    “There’s been a focus on the trade talks because part of the economic weakness in China has been driven by the tariffs,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

    The dollar index slipped ahead of a week of central bank decisions, including an expected interest rate cut by the U.S. Federal Reserve.

    A soft dollar makes commodities priced in the U.S. currency cheaper for buyers using other currencies.

    The bullish elements eclipsed data that showed growth in China’s factory output and retail sales in August slumped to their weakest since last year.

    Copper strides to five-month peak on hopes for US rate cuts

    “This week the theme is stimulus, not only whether we can get some more in China following that data dump, which wasn’t exactly pretty, but also in the U.S. with a rate cut expected,” Hansen said.

    The most-traded copper contract on the Shanghai Futures Exchange closed daytime trading up 0.4% at 81,000 yuan ($11,371.77) a ton.

    LME copper prices have gained 16% this year but have struggled to make much headway above the $10,000 level.

    Prices received added impetus when they broke through a double-top technical formation, based on highs of $10,164.50 in March this year and $10,158 in September last year, which Hansen said had been capping gains.

    LME aluminium rose 0.5% to $2,702.50 a ton after touching its strongest since July 29 at $2,705.

    Nickel edged up 0.1% to $15,410 and zinc gained 0.7% to $2,978 for its highest since March 25.

    Lead lost 0.8% to $2,002 and tin CMSN3 shed 0.9% to $34,670.

    You Might Also Like