Copper rises on China support for stock market and hopes for more stimulus
Updates prices, adds SHFE stocks detail
By Mai Nguyen
Oct 18 (Reuters) -Copper prices rose on Friday, buoyed by China's measures to boost liquidity in the stock market and expectations of more stimulus after weak economic growth data.
Three-month copper on the London Metal Exchange CMCU3 rose 1.2% to $9,629 per metric ton by 0743 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange SCFcv1 closed up 0.3% at 76,980 yuan ($10,827.77) a ton.
"Market is moving on more policy measures details and data released by China this morning. Q3 GDP growth slowed, hence the pressure is on policy makers to push out more stimulus," said a trader, noting that better-than-expected industrial output and retail sales data also lent support.
China's economy grew at the slowest pace since early 2023 in the third quarter and its property sector continued to show sharp weakness, while consumption and industrial output figures for September beat forecasts.
China's central bank kicked off two funding schemes that will initially pump as much as 800 billion yuan into the stock market, boosting Chinese equities.
The central bank governor also flagged potential interest rate cuts by year-end.
Measures aimed at increasing liquidity in the capital market are also bullish for metals, the trader said.
However, rising copper inventories in China capped the price gains. SHFE copper stocks rose 7.6% week-on-week to 168,425 tons, the highest since Sept. 9.
LME aluminium CMAL3 rose 1% to $2,578 a ton, tin CMSN3 climbed 1.2% to $31,600, zinc CMZN3 edged up 0.4% to $3,063, lead CMPB3 increased 0.1% to $2,072, while nickel CMNI3 was flat at $17,005.
SHFE aluminium SAFcv1 fell 0.5% to 20,600 yuan a ton, nickel SNIcv1 dropped 2.2% to 128,750 yuan, and tin SSNcv1 dropped 1.8% to 258,160 yuan, tracking overnight losses in London. Lead SPBcv1 edged up 0.2% at 16,760 yuan and zinc SZNcv1 rose 0.1% to 25,045 yuan.
For the top stories in metals and other news, click
TOP/MTL or MET/L
($1 = 7.1095 Chinese yuan)
Reporting by Mai Nguyen in Hanoi; Editing by Sumana Nandy and Subhranshu Sahu
For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C
Foreign exchange rates FX=SPEED GUIDES LME/INDEX
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
