Shanghai copper prices rose 3 percent on Thursday and London futures reversed early losses as a rise in equities stabilised the market, but traders see more weakness in the near term as the market faces "a wall of worry". A 4.8 percent surge in Chinese equities gave metals a late afternoon sugar rush, lifting Shanghai copper to a two-day high and lighting a fire under London which had spent most of the day in the red.
Copper for three-month delivery on the London Metal Exchange rose $57 to $6,232 a tonne by 0713 GMT. Benchmark third-month Shanghai copper rallied 1,430 yuan to close at 48,820 yuan. When the Chinese market shut on Wednesday London copper was trading at $6,098.
London copper, which has doubled in price this year, has lost as much as 8 percent from an 11-month high to a near two-week low since Friday and although many expect a soggy September, longer term the outlook is sunnier.
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