METALS-Copper rises in London on weak dollar; China vows policy support

Credit: REUTERS/Reuters Staff

Updates prices at 0425 GMT, adds quotes

July 18 (Reuters) - Copper prices in London rebounded on Tuesday as a weak dollar kept greenback-priced metals cheaper to holders of other currencies, but weak data from China dented sentiment.

Three-month copper on the London Metal Exchange CMCU3 rose 0.2% to $8,507.50 per metric ton by 0425 GMT, having lost 2.1% in the previous session, its biggest decline in more than three weeks.

The dollar index .DXY wobbled near its one-year low, as investors awaited fresh catalysts to gauge if the currency has further downside risk amid cooler-than-expected U.S. inflation.

Authorities in top metals consumer China said they will roll out policies on consumption recovery and expansion, boost automobile and electronics demand and increase household income, which could eventually help the demand for metals.

But a series of weak economic growth data from China dented appetite for copper, often used as a measure of global economic health.

"This morning is more of a rebound play from yesterday's sell off. (The policies are) already factored in. You can see that from the low volume," a metals trader said.

"I think the U.S. dollar weakness will continue, and asset prices will glide higher," the trader said.

The most-traded August copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.8% to 68,460 yuan ($9,548.12) per metric ton, tracking overnight losses in London.

LME aluminium CMAL3 was almost flat at $2,256 per metric ton, nickel CMNI3 increased 0.2% to $21,105, lead CMPB3 advanced 0.2% to $2,104.50, tin CMSN3 was up 0.1% at $28,400 and zinc CMZN3 was almost unchanged at $2,411.

SHFE nickel SNIcv1 fell 2% to 164,040 yuan per metric ton, zinc SZNcv1 dropped 0.5% to 20,235 yuan, tin SSNcv1 declined 0.6% to 231,620 yuan while lead SPBcv1was almost flat at 15,710 yuan and aluminium SAFcv1 increased 0.3% to 18,265 yuan.

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($1 = 7.1700 yuan)

(Reporting by Mai Nguyen in Hanoi; Editing by Janane Venkatraman and Sonia Cheema )

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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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