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Markets

Copper rises as Fed signals no immediate rate hike

Published Updated
By

Copper prices advanced on Thursday after the US Federal Reserve signalled it would stay patient before raising rates to sustain the country's economic growth and employment recovery.

Three-month copper on the London Metal Exchange rose 1.6% to $9,607 a tonne by 0427 GMT, rebounding from two straight sessions of losses.

The most-traded December copper contract on the Shanghai Futures Exchange was almost unchanged at 70,430 yuan ($11,015.88) a tonne.

The Fed said it would trim its massive bond-buying programme starting this month, but stay patient and wait for more job growth before raising interest rates.

Copper is often used as a gauge of global economic health due to its widespread application in many sectors. A delay in US rate hikes is likely to sustain growth in the world's biggest economy.

Fundamentals

  • LME aluminium rose 0.9% to $2,680 a tonne, nickel advanced 1.1% to $19,380 a tonne, and zinc was up 1.2% at $3,347.50 a tonne.

  • ShFE aluminium fell 1.1% to 19,880 yuan a tonne, nickel decreased 1.5% to 142,680 yuan a tonne, while tin rose 1.8% to 278,200 yuan a tonne.

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