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Ningbo Jintian Copper (Group) Co., Ltd.
Ningbo Jintian Copper (Group) Co., Ltd.

METALS-Copper gains on weaker dollar, China stimulus hopes

July 20 (Reuters) - London copper prices rose on Wednesday, buoyed by a pullback in the U.S. dollar and hopes of more stimulus from top consumer China, although demand worries due to slowing economic growth kept gains in check.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange CMCU3 was up 0.9% to $7,345 a tonne by 0214 GMT.

* The most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 eased 0.1% to 56,400 yuan ($8,361.25) a tonne.

* The U.S. dollar retreated on Wednesday, as the euro extended its overnight bounce on relief Europe might be able to avoid the worst fears concerning energy shortages. USD/

* A weaker greenback makes dollar-denominated metals less expensive for other currency holders.

* China kept its monthly benchmark lending rates for corporate and household loans unchanged, matching market expectations.

* China's Premier Li Keqiang said the recovery in the Chinese economy from a recent bout of weakness is not yet firmly established and "painstaking" efforts are needed to stabilise overall economic performance, according to state media.

* New U.S. home-building activity fell to a nine-month low in June and permits for new construction projects slipped as well, the latest indication of a cooling housing market as surging mortgage rates reduce affordability.

* Nickel miner Vale Indonesia INCO.JK reported 12,567 tonnes of nickel matte output for the April-June period, down 16.5% from the same period last year at 15,048 tonnes, the company said in a statement on Tuesday.

MARKETS NEWS

* Asian shares extended a global rally, as strong U.S. corporate earnings and the expected resumption of Russian gas supply to Europe helped lift sentiment and ease fears of a recession. MKTS/GLOB

DATA/EVENTS (GMT)

0600 UK CPI YY June

1400 EU Consumer Confid. Flash July

1400 US Existing Home Sales June

PRICES Three month LME copper CMCU3

Most active ShFE copper SCFcv1

Three month LME aluminium CMAL3

Most active ShFE aluminium SAFcv1

Three month LME zinc CMZN3

Most active ShFE zinc SZNcv1

Three month LME lead CMPB3

Most active ShFE lead SPBcv1

Three month LME nickel CMNI3

Most active ShFE nickel SNIcv1

Three month LME tin CMSN3 Most active ShFE tin SSNcv1

($1 = 6.7454 Chinese yuan renminbi)

(Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)


Resource from: https://www.nasdaq.com/articles/metals-copper-gains-on-weaker-dollar-china-stimulus-hopes