Copper prices rose on Tuesday, as the dollar weakened ahead of a barrage of crucial US economic data this week, while China’s measure to support its stock market also lifted risk sentiment.
Three-month copper on the London Metal Exchange rose 0.5% to $8,397.50 per metric ton by 0240 GMT as trading resumed after a long holiday weekend, while the most-traded October copper contract on the Shanghai Futures Exchange edged up 0.2% to 69,070 yuan a ton.
The dollar eased as traders refrained from placing big bets ahead of a slew of US economic data, including the PCE price index on Thursday and the non-farm payrolls report on Friday, that could define the outlook for interest rates.
A softer greenback makes the dollar-priced metals more affordable for buyers holding other currencies.
Also helping risk sentiment across financial assets was China’s move on Monday to boost its stock market by slashing stamp duty, among other measures. China is the world’s biggest metals consumer.
LME aluminium rose 0.5% to $2,160.50 a ton, while nickel slipped 1.2% to $20,540 from a three-week high hit in the previous session. Zinc climbed 1% to $2,406.50, on track for a seventh session of gain in eight.
LME lead fell 0.4% to $2,153, on track for a third straight loss.
LME tin shed 1.6% to $25,085, its lowest since Aug. 18.
Shanghai copper gains, Fed rate hike worries cap gains
SHFE aluminium rose 0.4% to 18,655 yuan a ton, while nickel fell as much as 2.6% to 164,520 yuan, its lowest since Aug. 17.
Zinc rose 0.6% to 20,805 yuan, while lead fell to its lowest since Aug. 22 at 16,225 yuan.
SHFE tin was on track for a fourth straight loss, down 1.7% to 210,980 yuan.
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