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Oct 14 (Reuters) – Copper prices rose on Friday as a rally in Wall Street boosted sentiment for risky assets amid expectations of some Chinese government stimulus ahead of a key political meeting.
Three-month copper on the London Metal Exchange CMCU3 rose 1.2% to $7,666 a tonne by 0310 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange SCFcv1 increased 1.9% to 63,320 yuan a tonne.
Wall Street had a volatile session on Thursday, closing more than 2% higher after an initial sell-off on higher-than-expected core inflation data proved short-lived, with technical support and short-position covering helping the rebound.
The Chinese Communist Party congress starts on Oct. 16 and market participants have been hoping for more announcements of stimulus measures to boost the economy of metals’ biggest consuming market, said a metals broker.
Solid Chinese demand for copper, amid tight supply and an open import arbitrage, has helped Yangshan import copper premium SMM-CUYP-CN surge to $137.50 a tonne, a one-year high and edging towards its highest since 2014.
However, with red hot inflation, the prospect of further U.S. rate hikes and a stronger dollar, the outlook for metals prices remains volatile.
LME zinc CMZN3 advanced 2.3% to $2,969 a tonne and tin CMSN3 increased 0.6% to $20,225 a tonne.
ShFE aluminium SAFcv1 was up 1.9% at 18,740 yuan a tonne, nickel SNIcv1 advanced 2.2% to 185,380 yuan a tonne, zinc SZNcv1 rose 1% to 24,940 yuan a tonne and tin SSNcv1 increased 1.3% to 176,700 yuan a tonne.
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TOP/MTL or MET/L
DATA/EVENTS (GMT)
0645 France CPI (EU Norm) Final MM, YY Sept
0900 EU Total Trade Balance SA Aug
1100 EU Reserve Assets Total Sept
1230 US Import Prices YY Sept
1230 US Retail Sales MM Sept
1400 US U Mich Sentiment Prelim Oct
(Reporting by Mai Nguyen in Hanoi; Editing by Savio D’Souza)
((mai.nguyen@thomsonreuters.com; +842438259623; Reuters Messaging: mai.nguyen.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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