LONDON: Copper prices dipped on Friday as the dollar resumed gains on worries about high US interest rates and after mixed data on China’s economy, the world’s top metals consumer.
Three-month copper on the London Metal Exchange (LME) fell 0.5% to $7,952 per metric ton by 1605 GMT. On a weekly basis, the contract eased 1.2%, the second straight week of decline, and has given up about 4% over the past two weeks.
Chinese data showed exports declined less than expected in September, while total social financing (TSF) climbed to 4.12 trillion yuan ($563.91 billion) from 3.12 trillion in August, higher than analysts had expected.
TSF includes off-balance sheet forms of financing outside the conventional bank lending system. “The Chinese export data are still negative, but compared to the prior month, it’s a significant step in the right direction,” said Nitesh Shah, commodity strategist at WisdomTree.
“Certainly, the government has not offered any big bazooka in terms of stimulus, so expectations should be moderated in terms of how much China can bounce back.”
Comments
Comments are closed for this article.