BEIJING: Prices of copper rose for a third straight session and were set for a weekly gain as the demand outlook for the metal brightened after the outsized US interest rate cut and on hopes of stimulus from top consumer China.
Three-month copper on the London Metal Exchange climbed 0.5% to $9,564.50 per metric ton by 0215 GMT, close to a two-month high it hit in the previous session. The contract has risen 3.3% so far this week.
most-traded October copper contract on the Shanghai Futures Exchange was 1.3% higher at 75,870 yuan ($10,751.03) a ton.
The US central bank kicked off its monetary easing cycle on Wednesday with a larger-than-usual half percentage point reduction, lifting global risk assets.
Also supporting sentiment were expectations of further stimulus by China to revive its economic growth as the Fed’s easing offers Beijing leeway to loosen monetary policy without unduly hurting the yuan.
That was despite China unexpectedly leaving benchmark lending rates unchanged at the monthly fixing on Friday.
Copper hits two-month high after Fed’s bold rate cut
LME aluminium dipped 0.1% to $2,536 a ton, zinc increased 0.2% to $2,935, nickel rose 0.5% at $16,415, lead climbed 0.6% to $2,087.50 and tin moved 1.2% higher to $32,200.
SHFE aluminium rose 0.4% to 20,045 yuan a ton, nickel added 1.1% to 125,800 yuan, zinc gained 1.1% to 24,200 yuan, lead ticked up 1.4% at 16,635 yuan and tin moved 2.1% higher to 261,480 yuan.
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