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July 11 (Reuters) – Copper prices fell on Monday, weighed down by a stronger U.S. dollar, rising COVID-19 cases in top consumer China and lingering concerns that rapid interest rate hikes would lead to a global economic slowdown.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange CMCU3 dropped 1.8% to $7,666 a tonne by 0327 GMT, while the most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 was down 2.2% to 58,420 yuan ($8,709.26) a tonne.
* The city of Shanghai has discovered a COVID-19 case involving a new subvariant Omicron BA.5.2.1, an official told a briefing on Sunday.
* China reported 429 new COVID-19 infections on July 10, compared with 420 new cases a day earlier.
* Atlanta Federal Reserve Bank President Raphael Bostic, until recently among the central bank’s most dovish policymakers, on Friday said he “fully” supports another three quarters of a percentage point interest rate rise.
* Strong U.S. payroll data on Friday gave the Fed ammunition to deliver another 75 basis point interest rate increase later this month.
* The dollar was on the front foot at the start of a week, as investor concerns about global economic growth offered support to the safe-haven currency.
* A stronger greenback makes dollar-denominated metals more expensive for other currency holders.
* Copper output at Peru’s huge Las Bambas mine has returned to normal levels after a two-month shutdown due to protests was ended last month, sources and power usage data show, but talks over a deal with community leaders have stalled.
MARKETS NEWS
* Asian shares were mostly under water on Monday, as investors braced for a U.S. inflation report that could force another super-sized hike in interest rates, and the start of an earnings season in which profits could be under pressure. MKTS/GLOB
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 = 6.7078 yuan)
(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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