Copper dips as U.S. inflation data boosts dollar

[ad_1]

Article content

HANOI — Copper prices eased on Thursday, as the dollar held gains on higher-than-expected U.S. inflation, making greenback-priced metals more expensive for holders of other currencies.

The most-traded June copper contract on the Shanghai Futures Exchange declined 0.8% to 75,790 yuan ($11,740.01) a tonne at 0533 GMT, while three-month copper on the London Metal Exchange fell 0.3% to $10,410 a tonne.

The dollar was supported by higher Treasury yields after a surprisingly strong rise in U.S. consumer prices fanned fears about an increase in inflationary pressure.

See also  5 Reasons Why Bybit is an Outstanding Crypto Exchange

The consumer price index jumped 0.8% last month, its largest gain since June 2009. Economists polled by Reuters had forecast the CPI would climb 0.2%.

“The April CPI data…was significantly higher than market expectations. However, the current orientation of loose monetary policy is not expected to change immediately,” China-based Huatai Futures said in a report.

“Fundamentally, we also need to focus on whether downstream procurement can recover to a certain extent when prices fall. As the current second quarter is still in the traditional peak consumption season…the recommendation to buy on dips is still maintained for the time being,” the company said.

Article content

FUNDAMENTALS

* China will monitor changes in overseas and domestic markets and effectively cope with a fast increase in commodity prices, the state council said.

* Canadian miner Turquoise Hill Resources Ltd saw its full-year copper production at 150,000-180,000 tonnes, slightly down from a previous estimate of 160,000-180,000 tonnes, after reporting first-quarter output up 29% year-on-year to 45,449 tonnes.

* LME aluminum rose 0.3% to $2,488 a tonne, nickel dropped 2% to $17,440 a tonne while tin declined 1.1% to $29,330 a tonne.

See also  ADVANTAGES OF FOREX CARDS AND THEIR BENEFITS FOR TRAVELERS

* ShFE nickel was down 2.8% at 128,630 yuan a tonne, tin lost 2.3% to 191,750 yuan a tonne while lead declined 2.1% to 15,290 yuan a tonne.

($1 = 6.4557 yuan) (Reporting by Mai Nguyen; Editing by Rashmi Aich)

[ad_2]

Source link

Latest

A Brief Guide To Business Energy Contracts

Even for the most experienced of entrepreneurs, business energy contracts have the potential to be very confusing. Due to the increasing energy prices and...

Beautiful Custom Bath Bombs Boxes with Logo

Customized bath bomb boxes packaging are attractive boxes that can be used as packaging and display boxes for bath bombs, as well as other similar products.

The Benefits Of Having Multi-Currency Accounts

Every day is a new day and technology helps you to connect with your loved ones who live far away from you and buy...

Hiring Advice For Startups: How To Attract Talent & Build A Brilliant Team

Businesses thrive on great ideas and effective people who can help these ideas actualize. Effective employees are even more crucial to startups yet to...

5 Money Mistakes You Don’t Want to Make This Holiday

Everybody makes mistakes, but little blunders seem to pack a bigger punch around the holidays. Go through this list to ensure you aren’t making...