METALS-London copper eases as dollar firms on rate hike bets

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Nov 12 (Businesshala) – Copper prices in London fell on Friday as the dollar strengthened on bets of a hike in US interest rates that could slow the pace of a global economic recovery.

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The dollar is heading for its best week in nearly five months against major peers, amid expectations of a sooner-than-expected rate hike from the Federal Reserve following a surprisingly strong reading on US inflation.

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A stronger dollar makes greenback-priced metals more expensive for holders of other currencies.

Initial rate hikes could reduce liquidity in financial markets and slow recovery in the world’s largest economy. Copper is often used as a gauge of global economic health.

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Three-month copper fell 0.1% to $9,627 a tonne by 0.257 GMT on the London Metal Exchange, while the most-traded December copper contract on the Shanghai Futures Exchange rose 0.7% to 70,750 yuan ($11,061.95) a tonne.

But the losses were compounded by tight inventory in exchange warehouses. MCUSTX-TOTALcu-stx-sgh, both the copper contracts are showing weekly gains.


* Codelco’s Chinese customers are reluctant to sign up for copper supplies in 2022 at the highest premium in seven years due to the strong backwardness in the copper market, said three sources with knowledge of the matter.

* LME aluminum fell 0.2% to $2,656 a tonne, nickel rose 0.5% to $19,865 a tonne and tin rose 0.4% to $37,850 a tonne.

* ShFE aluminum rose 2% to 19,475 yuan a tonne, nickel rose 1.7% to 147,140 yuan a tonne and tin jumped 2.8% to 288,750 yuan a tonne.

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* Asian share prices rose as a shock to a surprisingly strong US inflation reading, with investors now hopeful that the worst price hikes may soon be over.

Data/Events (GMT)

1500 US You Mitch Sentiment Prelim November ($1 = 6.3958 Yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Ramakrishnan M)


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