METALS-Base metals fall ahead of Fed rate decision
BY Reuters | ECONOMIC | 09/18/24 01:58 AM EDTSept 18 (Reuters) - Prices of most nonferrous metals fell in London on Wednesday amid caution ahead of an interest rate decision by the U.S. Federal Reserve.
Three-month copper on the London Metal Exchange fell 0.6% to $9,314 per metric ton by 0454 GMT, while the most-traded October copper contract on the Shanghai Futures Exchange rose 0.3% to 74,340 yuan ($10,476.32) a ton.
The Fed is expected to lower interest rates for the first time in more than four years later in the day.
A rate cut often helps to boost economic growth and metals demand, as well as pressuring the dollar.
However, U.S. retail sales unexpectedly rose in August, suggesting that the economy remained on a solid footing through much of the third quarter.
"This lessens the need for an aggressive rate cut by the Fed," ANZ analysts said in a note.
"The market is also on edge as it awaits a response from Beijing following another month of poor economic data."
Chinese President Xi Jinping last week urged authorities to strive to achieve the country's annual economic goals, leading to expectations that more stimulus measures will be released to bolster a flagging economic recovery.
LME aluminium fell 1.2% to $2,494 a ton, nickel declined 0.8% to $16,065, zinc dropped 1.5% to $2,881.50, lead decreased 0.8% to $2,002, and tin <CMSN3 dropped 1.6% to $31,350.
SHFE aluminium rose 0.7% to 19,890 yuan a ton, zinc increased 0.4% to 23,840 yuan, while nickel fell 0.6% to 123,540 yuan, lead dropped 2.2% to 16,410 yuan, tin declined 1.1% to 254,190 yuan.
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($1 = 7.0960 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)