Copper rose for a second session after a US employment report eased pressure on the Federal Reserve to raise interest rates. Futures gained as much as 0.9% on the London Metal Exchange on Monday, while Asian stock markets also advanced. Copper had seen the biggest weekly loss since March on Friday, hit by data showing industrial weakness in China.
In the US, data showed nonfarm payrolls rising just 29,000 last month, below all estimates by economists surveyed by Bloomberg. That led traders to pare bets that the Fed would hike rates this month, which would be negative for non-yielding assets like commodities.
Prices for the red metal are still consolidating near record levels after the threat of US tariffs saw traders ship hundreds of thousands of tons of metal into the country, potentially squeezing supply elsewhere. Meanwhile, demand is being bolstered by consumption by data centers and renewable energy. Copper rose 0.6% to trade at $14,347 a ton on the LME by 10:27 a.m. Singapore time.
Chinese traders are still away for the Golden Week holiday, which may be curbing market liquidity across metals.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing