METALS-Base metals rise after Fed's bumper rate cut, China stimulus hope
BY Reuters | ECONOMIC | 09/19/24 01:12 AM EDT(Recasts, updates prices)
BEIJING, Sept 19 (Reuters) - Prices of most base metals rose on Thursday, following the long-awaited U.S. Federal Reserve rate cuts and with bets of more stimulus in top metals consumer China.
Three-month copper on the London Metal Exchange added 0.2% to $9,418 per metric ton by 0449 GMT, extending previous session's gains.
The most-traded October copper contract on the Shanghai Futures Exchange was up 0.4% at 74,760 yuan ($10,560.52) a ton.
The U.S. central bank kicked off its monetary easing cycle on Wednesday with a larger-than-usual half-percentage-point reduction that Chair Jerome Powell said was meant to show the policymakers' commitment to sustaining a low unemployment rate now that inflation has eased.
Shares of Chinese real estate developers rebounced after the Fed decision gave Beijing policymakers more room to stimulate the weak economy.
There's also speculation of China cutting its Loan Prime Rate (LPR) and mortgage rates to support the ailing housing market and stimulate growth recovery, a trader said.
The real estate sector is a major consumer of industrial metals.
Countering the supports was a firmer U.S. dollar, making the greenback-priced commodity more expensive.
The dollar rose broadly, recovering from an earlier tumble in the immediate aftermath of the Fed decision.
Meanwhile, China's refined copper output in August remained at a strong 1.12 million tons, up 0.9% from a year earlier.
LME aluminium lost 0.2% to $2,532.50 a ton, while zinc increased 0.6% to $2,903.50, nickel rose 0.4% at $16,295, lead climbed 0.7% to $2,052 and tin moved 0.3% higher to $31,700.
SHFE aluminium nudged 0.2% higher to 19,925 yuan a ton, nickel added 0.9% to 125,030 yuan, zinc gained 0.3% to 23,980 yuan, lead remained unchanged at 16,450 yuan and tin moved 0.5% higher to 256,800 yuan.
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($1 = 7.0792 Chinese yuan renminbi) (Reporting by Siyi Liu and Colleen Howe in Beijing; Mai Nguyen in Hanoi; Editing by Rashmi Aich and Sumana Nandy)