(July 6): Copper rose for a third day and aluminium extended a rebound from a four-month low, supported by fading expectations that the Federal Reserve will raise interest rates.
Three-month copper edged higher on the London Metal Exchange, extending a 0.3% gain in the previous session that helped it snap a two-week losing streak. Traders pared bets on tighter monetary policy after Fed Chair Kevin Warsh said last week that price risks were coming down, relieving some of the pressure on industrial demand.
Base metals were also supported Monday as some Chinese funds shifted into metal stocks and futures in anticipation of solid first-half earnings for producers, said Wu Kunjin, head of base metals research at Minmetals Futures Co. Several Chinese companies are due to report preliminary results in the coming weeks, with a rally in commodities from gold to copper expected to bolster profits from a year earlier.
Copper rose as much as 0.7% before paring gains to trade at US$13,402.50 a tonne — up 0.3% — as of 11.30am in Shanghai. Aluminium gained 0.5% to US$3,107 a tonne, edging higher after a decline prompted by expectations of returning supplies from the Middle East.
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