Nov 4 (Reuters) – Copper prices advanced on Thursday after the U.S. Federal Reserve signalled it would stay patient before raising rates to sustain the country’s economic growth and employment recovery.
Three-month copper on the London Metal Exchange CMCU3 rose 1.6% to $9,607 a tonne by 0427 GMT, rebounding from two straight sessions of losses.
The most-traded December copper contract on the Shanghai Futures Exchange SCFcv1 was almost unchanged at 70,430 yuan ($11,015.88) a tonne.
The Fed said it would trim its massive bond-buying programme starting this month, but stay patient and wait for more job growth before raising interest rates.
Copper is often used as a gauge of global economic health due to its widespread application in many sectors. A delay in U.S. rate hikes is likely to sustain growth in the world’s biggest economy.
FUNDAMENTALS
* LME aluminium CMAL3 rose 0.9% to $2,680 a tonne, nickel CMNI3 advanced 1.1% to $19,380 a tonne, and zinc CMZN3 was up 1.2% at $3,347.50 a tonne.
* ShFE aluminium SAFcv1 fell 1.1% to 19,880 yuan a tonne, nickel SNIcv1 decreased 1.5% to 142,680 yuan a tonne, while tin SSNcv1 rose 1.8% to 278,200 yuan a tonne.
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TOP/MTL or MET/L MARKETS NEWS
* Share markets firmed after the Fed engineered an orderly start to unwinding its massive stimulus programme, though doubts about the inflation outlook did push up longer-dated bond yields. MKTS/GLOB DATA/EVENTS (GMT)
0700 Germany Industrial Orders MM Sept
0850 France Markit Serv, Comp PMI Oct
0855 Germany Markit Serv, Comp Final PMI Oct
0900 EU Markit Serv, Comp Final PMI Oct
1200 UK BOE Bank Rate Nov
1200 UK GB BOE QE Corp Nov
1200 Brazil Industrial Output MM, YY Sept
1230 US International Trade $ Sept
1230 US Initial Jobless Claim weekly
1300 Brazil Markit Serv, Comp PMI Oct
($1 = 6.3935 yuan)
(Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)
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