Off The Wire
METALS-Copper stumbles to 17-month low as inflation data fans slowdown fears
"Recession fears are the dominating factor right now, that's taking casualties right, left and centre. Every time there's an indication of more hawkish policy, markets fall further," said Nitesh Shah, commodity strategist at WisdomTree.
Euro zone inflation hit another record high in June, data
showed on Friday, which Shah said "looks alarming high, giving
more firepower to the ECB". Even some bullish news from top metals consumer China failed
to lift sentiment. China's manufacturing activity expanded at
its fastest in 13 months in June, buoyed by a strong rebound in
output. But U.S. manufacturing activity slowed more than expected in
June to a two-year low, while the picture was also gloomy in the
euro zone. "Trying to get China back to full speed when the rest of the
world is looking like it will slow down is going to be
difficult," Shah added.
LME copper was on track for a fourth consecutive weekly
decline, having registered its worst quarter since 2011 in the
three months ended June, falling 20.4%. It was down 4% for the
Other industrial metals also fell, with zinc dropping 9%
this week and aluminium headed for its sixth straight weekly
* Also weighing on metals was a firmer dollar index , making commodities priced in the U.S. currency more expensive for buyers using other currencies.
* Why sentiment in industrial metals has been crumbling
* LME aluminium was barely weaker at $2,445 a tonne, zinc dropped 3.3% to $3,052.50, the lowest since October 2021, and tin shed 1.1% to $26,150. Nickel slid 3.6% to a five-month low of $21,890,
but lead climbed 1.7% to $1,940.50.
(Reporting by Eric Onstad; additional reporting by Brijesh Patel in Bengaluru; editing by Barbara Lewis, Shinjini Ganguli and David Evans)
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