LME copper rises on US stimulus hopes, softer dollar

London copper rose on Wednesday on hopes of a massive stimulus package under the incoming administration of US President-elect Joe Biden, with a weaker dollar adding to the appeal of the greenback-priced metal.

Three-month copper on the London Metal Exchange gained 0.7% to $8,006 a tonne by 0400 GMT.

Biden's nominee for Treasury Secretary, Janet Yellen, urged lawmakers to "act big" on the next coronavirus relief package, saying the benefits of increased spending outweigh the costs of a higher debt burden.

"The expectation of (an) aggressive fiscal policy is still relatively favourable for copper prices," analysts at Huatai Futures in China wrote in a note.

"After the current low consumption season, the outlook for copper prices may still be relatively promising."

However, investors remained guarded as top metals consumer China stepped up COVID-19 restrictions, with capital Beijing shutting down a subway station after reporting the biggest daily jump in new cases in more than three weeks.

The most-traded March copper contract on the Shanghai Futures Exchange ended the morning session down 0.1% at 58,890 yuan ($9,102.29) a tonne, surrendering early gains.