London copper eases 6-week high on dollar strength


Jan. 5 (Reuters) – Copper prices in London fell on Wednesday, retreating from a six-week high reached in the previous session, as the US dollar remained firm on expectations of anticipated interest rate hikes by the Federal Reserve.

Three-month copper on the London Metal Exchange was down 0.4% to $ 9,725 a tonne at 03:30 GMT. On Tuesday, prices hit their highest level since November 25 at $ 9,812.

The most-traded copper contract in February on the Shanghai Futures Exchange rose 0.6% to 70,210 yuan ($ 11,018.69) per tonne.

Register now for FREE and unlimited access to Reuters.com

Register

The dollar hovered near a two-week high reached in the previous session against a basket of major currencies while hitting a five-year high against the Japanese yen.

As a firmer dollar makes metals more expensive to the greenback for holders of other currencies, a rise in interest rates could reduce liquidity in financial markets and slow the recovery in the world’s largest economy.

Among other industrial metals, aluminum LME fell 0.1% to $ 2,837.5 per tonne, nickel slipped 0.7% to $ 20,980 per tonne, lead fell 0.2 % at $ 2,293 per tonne, tin was flat at $ 39,195 per tonne and zinc fell 0.8% to $ 3,575 per tonne. tonne.

* Aluminum ShFE rose 0.4% to 20,330 yuan per ton, while nickel gained 1.6% to 154,130 yuan, zinc rose 1.4% to 24,430 yuan, and lead fell 1.1% to 15,260 yuan. Tin climbed 2.2% to 296,780 yuan per ton, after hitting a record high of 297,900 yuan earlier.

* Chile’s total copper production in November fell 0.6% year-on-year to 481,800 tonnes, due to declines at state-owned Codelco and the giant Escondida mine, the Chilean Copper Commission reported on Tuesday.

* Indonesian coal miners are due to hold talks with government officials on Wednesday over a ban on the country’s coal exports that has pissed off global fuel markets and triggered energy security concerns in some major economies. Read more

* For the best articles on metals and other news, click

Where

* Asian stocks slipped following a mixed session on Wall Street as rising US Treasury yields weighed on global tech companies and pushed the dollar to a five-year high against the Japanese yen.

DATA / EVENTS (GMT)

0850 France Markit Serv, Comp PMI

0855 Germany Markit Services PMI

0855 Germany Markit Comp Final PMI

0900 EU Markit Serv, Comp Final PMIs

1445 US Markit Serv, Comp Final PMI

1900 The Federal Open Market Committee of the United States publishes

the report of its political meeting from December 14 to 15

($ 1 = 6.3719 Chinese yuan)

Register now for FREE and unlimited access to Reuters.com

Register

Reporting by Eileen Soreng in Bangalore; Editing by Subhranshu Sahu

Our Standards: Thomson Reuters Trust Principles.


Comments are closed.