SPX4,305.32+8.18 0.19%
DIA341.61+2.24 0.66%
IXIC13,100.89-27.17 -0.21%

METALS-Base metals rally as less-hawkish Powell calms rate nerves

METALS-Base metals rally as less-hawkish Powell calms rate nerves

Reuters · 07/27/2022 22:57
METALS-Base metals rally as less-hawkish Powell calms rate

- Prices of base metals rallied on Thursday, as comments by U.S. Federal Reserve Chairman Jerome Powell eased some investor worries about the pace of rate hikes, with sentiment buoyed by a weaker dollar and hopes of further stimulus from China.

Three-month copper on the London Metal Exchange CMCU3 was up 1.1% at $7,723 a tonne, as of 0147 GMT, speeding up a rally seen since last Thursday.

The U.S. Federal Reserve raised rates by 75 basis point for the second consecutive meeting to rein in inflation, such a move had been broadly anticipated and priced in the metals markets.

Comments from Fed Chair Jerome Powell after the policy statement were seen as less hawkish, therefore, sparking hopes of a slower interest rate hike for the remaining time this year.

Copper, with its wide application in different industries from power generation to transportation, is often used as an economic parameter.

A soft dollar also eased some pressure on metals, making it cheaper for holders of other currencies. L1N2Z82TZ

In other metals, LME aluminium CMAL3 gained 1.5% to $2,458 a tonne, zinc CMZN3 climbed 1% to $3,086, CMNI3 was flat at $21,813, lead CMPB3 edged up 0.6% to $2,025 and tin CMPB3 rose 1.7% at $24,750.

The market also hopes to see more stimulus on infrastructure projects that could strengthen metals demand after China's Politburo meeting at the end of this month, where the country's top decision-making body gathers to discuss economic policies for the rest of the year.

The most-traded September copper contract on the Shanghai Futures Exchange SCFcv1 was up 1.9% at 59,330 yuan ($8,801.63) a tonne.

ShFE lead SPBcv1 climbed 0.3% to 15,240 yuan a tonne, tin SSNcv1 advanced 1.7% to 195,830 yuan a tonne, and SNIcv1 rose 1.1% to 169,880 yuan a tonne.

For the top stories in metals and other , click


($1 = 6.7408 Chinese yuan)

(Reporting by Siyi Liu and Emily Chow; Editing by Sherry Jacob-Phillips)


 For related  and prices, click on the codes in brackets: LME price overview      RING= COMEX copper futures  0#HG: All metals          MTL   All commodities       C 
Foreign exchange rates FX=SPEED GUIDES LME/INDEX