Copper rises as stimulus hope fuels risk sentiment
- LME aluminium increased 0.9% to $1,998.50 a tonne.
- Nickel climbed 0.9% to $18,385 a tonne.
HANOI: Copper prices advanced on Thursday as risk sentiment surged on hopes that U.S. President Joe Biden would introduce more economic stimulus into the world's biggest economy to remedy damage wrought by the coronavirus pandemic.
Three-month copper on the London Metal Exchange rose 0.4% to $8,077.50 a tonne by 0310 GMT, while the most-traded March copper contract on the Shanghai Futures Exchange advanced 0.5% to 59,410 yuan ($9,195.46) a tonne.
U.S. stocks closed at record highs on Wednesday amid expectations that Biden would deploy further economic stimulus to offset damage caused by the COVID-19 pandemic.
A weaker U.S. dollar, pressured by the stimulus optimism, also made greenback-priced metals on the LME more appealing to holders of other currencies.
LME aluminium increased 0.9% to $1,998.50 a tonne, nickel climbed 0.9% to $18,385 a tonne, while ShFE aluminium rose 1.9% to 15,010 yuan a tonne and zinc leaped 1.2% to 20,585 yuan a tonne.
However, keeping metals prices in check is top consumer China's increasing new COVID-19 cases despite a flurry of recent measures to contain the outbreak in the northeast.
Comments
Comments are closed.