Most base metals rise on expectation of US rate cut
Sept 16 (Reuters) -Most nonferrous metals rose on Monday, buoyed by a softer dollar amid expectation of an interest rate cut by the U.S. Federal Reserve this week.
Three-month aluminium on the London Metal Exchange (LME) CMAL3 rose 0.9% to $2,492.50 a metric ton by 0406 GMT. Earlier in the session, the contract hit the highest level since Aug. 30 at $2,494.50.
Trading volume was tepid as markets in China are closed on Sept. 16-17 for a public holiday.
The Fed is nearly as likely to deliver an outsized interest-rate cut as a more-usual-sized reduction, trading in rate-futures contracts suggested, as financial markets priced in a bigger chance that the Fed will move more aggressively.
A rate cut would support economic growth and physical metals demand, as well as putting pressure on the dollar.
The dollar index .DXY eased to hover near its lowest since Sept. 5. A softer dollar makes greenback-priced metals cheaper to holders of other currencies.
LME zinc CMZN3 increased 0.7% to $2,925.50, having also hit its highest since Aug. 30 earlier in the session at $2,928. Lead CMPB3 was up 0.2% at $2,048 and tin CMSN3 edged up 0.3% to $31,895.
Meanwhile, weekend data showed that industrial output growth in top metals consumer China slowed to a five-month low in August, while retail sales and new home prices weakened further.
LME copper CMCU3 fell 0.3% to $9,277.50 a ton and nickel CMNI3 eased 0.2% to $15,915.
The sluggish Chinese data, however, bolstered the case for aggressive stimulus to shore up the world's second-biggest economy and help the country achieve its annual growth target pushed by President Xi Jinping.
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Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu
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