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

METALS-Copper rises on weaker dollar, upbeat risk sentiment

METALS-Copper-rises-on-weaker-dollar,-upbeat-risk-sentiment.jpg

By Brijesh Patel

July 20 (Reuters) - Copper and most other industrial metals rebounded on Wednesday as the dollar weakened, while strong U.S. company earnings and easing recession fears boosted investors' appetite for riskier assets.

Three-month copper on the London Metal Exchange CMCU3 rose 1.8% to $7,408 a tonne by 0702 GMT.

The most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 ended daytime trading up 0.6% to 56,840 yuan ($8,419.74) a tonne.

"This push up (in metals) is just a reflection of higher risk appetite after last night's U.S. equity rally. In addition, there is some USD weakness that is supporting commodities," a Singapore-based metals trader said.

"I think copper will test the $7,475 level and break past it this afternoon and use the level as a temporary base for the rest of week."

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

Copper, used in power and construction and often seen as a gauge for global economic health, fell below $7,000 a tonne for the first time since November 2020 last week on demand worries due to slowing economic growth in top consumer China and elsewhere.

DOLLAR: The U.S. dollar =USD extended its losing streak to a fourth day to hover near two-week low, making greenback-denominated metals less expensive for other currency holders. USD/

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

COPPER: Chilean miner Antofagasta Plc ANTO.L lowered its full-year copper output target following a leak in an underground pipeline that transports concentrate from its flagship project.

DATA: 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.

PRICES: LME aluminium CMAL3 rose 0.9% to $2,409 a tonne, zinc CMZN3 gained 0.9% to $2,973.50, nickel CMNI3 climbed 3% to $21,205, lead CMPB3 was up 0.3% at $1,993 and tin CMSN3 fell 1.3% to $24,500.

Shanghai aluminium SAFcv1 eased 0.7%, zinc SZNcv1 rose 1%, nickel SNIcv1 jumped 5.6%, lead SPBcv1 was down 0.1% and tin SSNcv1 lost 1.2%.

($1 = 6.7508 Chinese yuan renminbi)

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


Resource from: https://www.nasdaq.com/articles/metals-copper-rises-on-weaker-dollar-upbeat-risk-sentiment