Copper Edges Lower After Sluggish Chinese Economic Data
October 16 2018 - 10:30AM
Dow Jones News
By David Hodari and Amrith Ramkumar
Copper prices edged lower on Tuesday, wobbling as worries about
a weaker Chinese economy continued to hang over the market.
Copper for December delivery fell 0.2% to $2.7835 a pound on the
Comex division of the New York Mercantile Exchange. Prices have
fallen more than 15% from their June four-year high, with investors
anxious that tariffs and a gradual slowdown in Chinese growth will
lower demand for metals used in construction and manufacturing.
Data Tuesday showed inflation in China hit a seven-month high
last month, and figures showed a 49% year-over-year drop in home
sales in China's 10 major cities during this year's Golden Week --
typically a time for big-ticket purchases.
On top of that, car sales fell in September for the third
straight month, putting China on course for its first annual slip
in passenger-car sales in almost three decades.
Worries about slower growth in the country, which consumes about
half the world's copper and a similar proportion of other
industrial materials, as well as China's monthslong tariff fight
with the U.S. have dented sentiment in the metals markets, analysts
say.
Base metals "will continue to see choppy price action amidst
this ongoing macro uncertainty," said Alastair Munro, a broker at
Marex Spectron. That said, "any ratchet higher in trade war
tensions is likely to result in China resorting to infrastructure
stimulus to support growth," a move which would be positive for
copper prices, Mr. Munro said.
In London on Tuesday, aluminum for delivery in three months
added 0.4% to $2,034.50 a metric ton. Zinc climbed 0.2% to $2,605,
tin was up 0.2% at $19,180, nickel edged down 0.7% to $12,530 and
lead rose 0.8% to $2,101.
Among precious metals, gold for December delivery continued a
recent rebound, climbing 0.4% to $1,235.30 a troy ounce. A weaker
dollar has lifted gold lately by making it cheaper for overseas
buyers. The WSJ Dollar Index, which tracks the dollar against a
basket of 16 others, dipped 0.2% Tuesday.
Elsewhere in precious metals, most-active silver futures climbed
0.6% to $14.810 a troy ounce. Platinum was up 0.2% at $848 and
palladium fell 0.4% to $1,074.20.
Write to David Hodari at David.Hodari@dowjones.com and Amrith
Ramkumar at amrith.ramkumar@wsj.com
(END) Dow Jones Newswires
October 16, 2018 10:15 ET (14:15 GMT)
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