China data boosts copper - Business News | The Star Online

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China data boosts copper


  • Markets
  • Tuesday, 18 Jul 2017

Copper rose 1.08 percent to $5,989.75 a tonne, touching its highest level since early March, as the economic data from top consumer China helped reinforce expectations of strong demand.

Copper rose 1.08 percent to $5,989.75 a tonne, touching its highest level since early March, as the economic data from top consumer China helped reinforce expectations of strong demand.

NEW YORK: Copper prices surged to their highest levels in more than four months after robust data supporting China's economic growth, while a gauge of global stocks marked a record high for a third straight session.

China's economy expanded at a faster-than-expected 6.9 percent clip in the second quarter, setting the country on course to comfortably meet its 2017 growth target.

Copper rose 1.08 percent to $5,989.75 a tonne, touching its highest level since early March, as the economic data from top consumer China helped reinforce expectations of strong demand.

"There's a bid across the complex on the Chinese data," said Macquarie analyst Vivienne Lloyd.

Among other commodities, U.S. crude <CLcv1> fell 1.18 percent to $45.99 per barrel and Brent <LCOcv1> was last at $48.39, down 1.06 percent.

Investors continued to await strong indications that an OPEC-led effort to drain a glut was proving effective but output increases in some top producers eased, keeping losses in check.

Spot gold <XAU=> added 0.4 percent to $1,234.02 an ounce.

Investors were also digesting U.S. data from Friday pointing to tame inflation and soft domestic demand that diminished prospects of a third interest rate increase from the Federal Reserve this year.

Expectations for another Fed rate hike in December stand at a less than 50 percent.

Benchmark 10-year notes <US10YT=RR> last rose 2/32 in price to yield 2.3141 percent, from 2.319 percent late on Friday.

The dollar <.DXY> fell 0.05 percent against a basket of currencies, dropping to a 10-month low during the session, with the euro <EUR=> up 0.14 percent to $1.1483.

"The markets are not convinced the Fed is going to be tightening rates anytime soon," said Vassili Serebriakov, FX strategist at Credit Agricole in New York. "In that kind of an environment, the dollar is struggling." - Reuters

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