Copper hovers near 5-week high on softer dollar, China stimulus hopes
Nov 15 (Reuters) - Copper held steady on Wednesday,
hovering near a five-week peak scaled in the previous session,
buoyed by a weaker U.S. dollar and expectations of more stimulus
measures in top consumer China.
Three-month copper on the London Metal Exchange was little changed at $8,226.50 a metric ton by 0708 GMT after hitting its highest since Oct. 2 on Tuesday.
The most-traded December copper contract on the Shanghai Futures Exchange closed 0.5% higher to 67,770 yuan ($9,359.72) a ton.
The dollar stuttered at broadly lower levels after slumping
overnight. A weaker greenback makes dollar-priced commodities
less expensive for holders of other currencies. "There was some profit taking seen as LME and SHFE opened
this morning, but the elevated prices stayed supported as China
retail sales beat expectations," a Singapore-based metals trader
"I think base metals can hold their ground amidst the
improving macro environment and more fresh longs should be built
up over the coming weeks."
China's October economic activity perked up as industrial output grew at a faster pace and retail sales growth beat expectations.
However, China's property sales fell at a faster pace in
October and investment in real estate slumped, official data
showed, suggesting the crisis-hit sector is yet to emerge from
The real estate sector is a major contributor to China's metals consumption.
Bloomberg News reported on Tuesday China plans to provide at
least 1 trillion yuan of low-cost financing to the nation's
urban village renovation and affordable housing programs, citing
people familiar with the matter.
LME aluminium gained 0.1% to $2,233.50 a ton, nickel eased 0.2% to $17,450, zinc added 0.6% to
$2,615, lead edged up 0.2% to $2,205.50 and tin was almost flat at $25,185.
SHFE aluminium gained 0.3% to 18,995 yuan a ton, nickel was up 0.6% at 139,300 yuan, zinc gained 1.4% to 21,880 yuan, lead gained 0.3% to 16,505 yuan and tin was steady at 213,750 yuan.
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(Reporting by Brijesh Patel in Bengaluru; Editing by Subhranshu
Sahu, Janane Venkatraman and Sohini Goswami)
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