MANILA, Jan 27 (Reuters) – Benchmark London copper and most other base metals fell on Thursday after the U.S. Federal Reserve signalled a hike in interest rates as early as March, lifting the U.S. dollar to near a five-week high.
A U.S. interest rate hike could trim liquidity in financial markets and dampen prospects of economic recovery, while a firmer dollar makes greenback-priced metals more expensive to holders of other currencies.
Three-month copper on the London Metal Exchange CMCU3 was down 0.9% at $9,824 a tonne, as of 0144 GMT.
Copper on the Shanghai Futures Exchange SCFcv1, however, rose 0.5% to 70,480 yuan a tonne.
FUNDAMENTALS
* In a news conference on Wednesday following a Federal Open Market Committee meeting, Fed chief Jerome Powell said “the committee is of a mind to raise the federal funds rate at the March meeting assuming that the conditions are appropriate for doing so”, as the U.S. central bank seeks to tame inflation.
* The United States has set out a diplomatic path to address sweeping Russian demands in eastern Europe, as Moscow held security talks with Western countries and intensified its military build-up near Ukraine with new drills.
* The leader of an Andean community said on Wednesday that residents will block a controversial road used by MMG’s 1208.HK Las Bambas mine to transport its metal starting on Thursday, a route that is a flashpoint of local protests.
* The U.S. Department of the Interior canceled two mineral leases for Antofagasta Plc’s ANTO.L proposed Twin Metals copper and nickel mine in Minnesota on Wednesday, effectively killing the project and handing a major win to environmentalists.
* For the top stories in metals and other news, click TOP/MTL or MET/L
MARKETS NEWS
* U.S. stocks retreated on Wednesday, erasing strong gains, after the Federal Reserve signaled an interest rate hike could be coming soon, while supply concerns stemming from tensions between Russia and Ukraine saw oil prices touch highs not seen since 2014. MKTS/GLOB
DATA/EVENTS (GMT)
1330 US Durable Goods Dec
1330 US GDP Advance Q4
1330 US Initial Jobless Clm Weekly
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
(Reporting by Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips)
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