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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)
((Brijesh.Patel1@thomsonreuters.com; Within U.S. +1 651 848 5832, Outside U.S. +91 8067493865; Reuters Messaging: Brijesh.Patel1.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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