METALS-Copper rebounds after soft U.S. jobs data hits dollar

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*Graphic-2021 Asset Returns: (Restructured with updated prices after jobs data)

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LONDON, Oct 8 (Businesshala) – Copper and other industrial metals jumped on Friday after the dollar tumbled on surprisingly weak US jobs data.

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The US economy created 194,000 jobs last month, the lowest in nine months, compared to the consensus forecast of 500,000 jobs.

The dollar index weakened, catching metals traders off-guard, who scrambled to adjust positions and buy back bearish trades, traders said.

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An easy dollar makes prices in US currency cheaper for buyers using other currencies.

“Today’s move has been very remarkable,” said Giancladio Torlizzi, partner at consultancy T-Commodity in Milan.

“The market remains very tight on the supply side, so it is very vulnerable to what the dollar does. So when the dollar reacted negatively to the payroll data, it took the metals off steam.

Benchmark copper on the London Metal Exchange (LME) was up 0.8% to $9,355.50 a tonne by 1600 GMT, having touched a low of $9,232.50 in morning trade and reversed direction after jobs data.

* LME nickel was the biggest gainer, rising 5.2% to $19,215 a tonne, partly due to short-covering. Broker Marex said net speculative short positions had climbed to 11.6% of open interest as of October 6, compared to a peak of 15.9% last year.

* Zinc also saw healthy gains, rising 3.5% to $3,157.50 after touching $3,179, the strongest since June 2018. “Zinc is one of the metals most affected by China’s electricity shortage,” said Torlizzi.

* LME aluminum rose 0.7% to $2,967.50 a tonne, lead rose 2.3% to $2,223 and tin climbed 2.5% to $36,150.

* Peru’s Andean community on Friday suspended a protest and blockade against Glencore’s Antapace mine, after the mine and residents reached an agreement to begin talks to seek a new deal. (Reporting by Zandi Shabalala and Eric Onstad Additional reporting by Mai Nguyen in Hanoi Editing by David Goodman and Louise Heavens)


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