Europe

Markets - Commodities - Europe

Copper slips as prospect of higher US rates underpin dollar LONDON: Copper dipped on Tuesday as the possibility of higher U.S. interest rates bolstered the dollar, but the prospect of a stronger global economy and easing worries about demand growth in top consumer China helped support prices.Benchmark copper on the London Metal Exchange had fallen 0.9 percent to $4,901 a tonne in official midday trading.The Federal Reserve is not expected to raise U.S. rates after this week's two-day meeting ending on Wednesday.But it is likely to make clear that as long as U.S. inflation and jobs continue to strengthen, weakness overseas will not stop rates from rising fairly soon.Higher rates could mean a firmer U.S. currency, which would make dollar-denominated commodities more expensive for non-U.S. firms, a relationship used by funds to generate buy or sell signals from numerical models."U.S. rate rises ultimately mean there are fewer concerns about U.S. and global growth, which is a positive for commodities demand," ...
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