Metals-Copper Falls as Dollar Firms on Fed Taper Signals
Metals-Copper Falls as Dollar Firms on Fed Taper Signals
Zeno Markets 8
Sept 23 (Reuters) – Copper prices fell on Thursday as the dollar strengthened after the U.S. Federal Reserve said it would begin tapering its stimulus programme as soon as November.
Three-month copper on the London Metal Exchange fell 0.5% to $9,242.50 a tonne by 0357 GMT, while the most-traded October contract on the Shanghai Futures Exchange advanced 0.1% to 68,710 yuan ($10,633.26) a tonne, tracking overnight gains in London.
The Fed said on Wednesday it would likely begin reducing its monthly bond purchases as soon as November and signaled interest rate increases may follow more quickly than expected.
The dollar hit its highest in a month after the Fed set the stage for rate hikes next year, far sooner than its developed market peers are expected to move.
A firmer dollar makes greenback-priced metals more expensive to holders of other currencies. Copper is often used as a gauge of global economic health and tapering could slow recovery in the world’s biggest economy.
FUNDAMENTALS
* LME lead rose 1% to $2,135.50 a tonne while ShFE aluminium advanced 2% to 23,365 yuan a tonne and ShFE tin hit a record 277,800 yuan a tonne on supply worry.
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MARKETS NEWS
* Asian shares moved higher, supported by some positive news from struggling developer China Evergrande Group, while the dollar held near a one-month top after the U.S. Federal Reserve took a hawkish tilt overnight.
DATA/EVENTS (GMT)
0645 France Business Climate Mfg Sept
0715 France Markit Mfg, Serv, Comp Flash PMIs Sept
0730 Germany Markit Mfg, Serv, Comp Flash PMIs Sept
0800 EU Markit Mfg, Serv, Comp Flash PMIs Sept
0830 UK Flash Mfg, Serv, Comp PMIs Sept
1100 UK BOE Bank Rate Sept
1100 UK GB BOE QE Corp Sept
1230 US Initial Jobless Clm Weekly
1345 US Markit Mfg, Serv, Comp Flash PMIs Sept
1600 Federal Reserve issues quarterly financial accounts
of the United States ($1 = 6.4618 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Ramakrishnan M.)
