LONDON: Copper prices probed lower on Friday, weighed down by worries about high interest rates, sluggish global growth and lack of additional stimulus in top metals consumer China.
Three-month copper on the London Metal Exchange (LME) was down 0.66% to 7,940 per metric ton in official open-outcry trading. It was set to end the week flat following two consecutive weeks of losses.
A surge in US government bond yields to 5% for the first time since 2007 hit wider financial markets including metals as investors feared interest rates would have to remain high to curb stubborn inflation. “The view on whether the US will keep interest rates (unchanged) next month is 50-50,” said Robert Montefusco at broker Sucden Financial said, adding that the uncertainty was keeping traders on the sidelines.
The short-term outlook for the metal used in power and construction was bearish due to a lack of additional stimulus from China and uncertainty about a global recession, he said.
“Copper remains technically supported at $7,800-$7,600 with some spec selling over the last few days. Some funds are still short on both CME and LME,” Montefusco added.
LME aluminium slipped 0.4% to $2,177 a ton, lead dropped 0.7% to $2,082, nickel rose 0.1% to $18,530, tin fell 2.2% to $24,650 while zinc rose 0.2% to $2,419.5
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