Mining
Wednesday, August 10th, 2022 9:01 am EDT
[Click here for an interactive chart of copper prices]
“In the near term, better data means equity and credit markets are pricing out a more severe recession risk. In this context base metals could catch up with this risk positive shift,” said Giles Coghlan, an analyst at broker HYCM.
Stronger data includes China’s copper imports rising to 463,693 tonnes in July, up 9.3% from a year earlier as the sharp drop in prices triggered buying.
US jobs growth, which accelerated unexpectedly in July has boosted expectations of another 75 basis point rate hike in September when the Federal Reserve next meets. US consumer prices data on Wednesday will yield further clues to the direction of US monetary policy.
Low copper stocks in LME registered warehouses are also supporting prices, as are canceled warrants — metal earmarked for delivery — at 28% compared with 18% at the start of August.
(With files from Reuters)
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