Copper ticks up as US tech rally, easing rate-hike bets temper dollar surge
SINGAPORE: Copper prices were marginally up on Tuesday , as a boost from a tech-driven US stock market rally and receding market bets on a Federal Reserve rate hike this month were largely offset by a stronger dollar. Benchmark three-month copper on the London Metal Exchange was up 0.08% at $14,431.5 a metric ton by 0300 GMT, and on track to rise for the third consecutive day. The Shanghai…
Copper prices experienced a slight increase on Tuesday as a surge in the US tech-driven stock market and decreased expectations of a Federal Reserve rate hike this month offset the effects of a stronger dollar. The benchmark three-month copper on the London Metal Exchange rose 0.08% to $14,431.5 per metric ton by 0300 GMT and was on track to rise for the third consecutive day.
Asian stocks, which had previously gained on the tech-heavy Nasdaq, continued their uptrend. Copper, known as "Dr Copper" due to its use as an economic health indicator, has gained demand expectations from the AI infrastructure buildout, electric grid upgrades, and electric vehicles. However, traders now anticipate a 24% chance of a rate hike in the October meeting, down from 71% a week ago.
The US dollar's rally, driven by gains in US Treasury yields, has put pressure on greenback-denominated commodities, making them pricier for buyers using other currencies. Aluminium saw a 0.16% increase, with prices falling over 17% since June's four-year high, partly due to eased supply concerns from the Gulf region and expectations of new production capacity in Indonesia. Zinc declined 0.08%, lead dipped 0.03%, nickel dropped 0.44%, and tin remained steady.
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