London copper was underpinned on Thursday by indications that the U.S. Federal Reserve is not hurrying to raise interest rates, even as the world's top economy logged robust second quarter growth that brightened the outlook for demand.
The U.S. economy rebounded sharply in the second quarter as consumers stepped up spending and businesses restocked, putting it on course to close out the year on a solid footing.
But the Federal Reserve on Wednesday reaffirmed it was in no rush to raise interest rates, even as it upgraded its assessment of the U.S. economy and expressed some comfort that inflation was moving up toward its target.[ID:nW1N0Q4007]
This has all helped to burnish the outlook for metals - at least for the near term.
"It's really the metals where people have a little higher confidence, and we share that," said analyst Dominic Schnider of UBS Wealth Management in Singapore.
"Maybe we already have 75 percent behind us and we're looking at the last 25 percent. The (positive) Chinese economy story might carry into the next quarter. But the game is structural deceleration, so bad news is waiting to come around again," he added.
Three-month copper on the London Metal Exchangeedged down by 0.2 percent to $7,128.75 a tonne by 0053 GMT after gaining around half a percent in the previous session. Prices are creeping back up towards $7,212, the peak from July 8 that was the loftiest since February
The most-traded October copper contract on the Shanghai Futures Exchangerose 0.6 percent in overnight trade.
Activity in China's vast factory sector likely expanded at the fastest pace in eight months in July, a Reuters poll showed on Wednesday, adding to evidence that the economy is regaining momentum after a burst of government stimulus measures.
However the International Monetary Fund said that China should lower its growth targets for next year, as part of a push towards safer and more sustainable growth. It also flagged the country's property slowdown as a cause for concern. [ID:nB9N0OL01V]
China's construction sector consumes a large portion of China's copper needs. China accounts for around 40 percent of refined copper demand.
In other upbeat news for the global economy, Euro zone economic sentiment unexpectedly improved in July despite the deepening crisis between the West and Russia over Ukraine, data showed on Wednesday.
LME aluminiumslipped by 0.2 percent after gaining 2 percent on Wednesday, while LME zinc and lead were mixed after profit-taking on a rally the session before.
Aluminium's gains came as exchange stocks looked to be locked up for a while.
The London Metal Exchange's attempts to cut backlogs at warehouses with new rules are likely to be delayed again for several months after judges declined to make an immediate ruling on a case holding up the reforms.
The news also helped propel cash prices to the highest against benchmark prices since Dec. 2012.
Newmont Mining Corpwill stick to a "parallel path" of arbitration and negotiation with the government of Indonesia in an attempt to resolve an impasse over copper concentrate exports, the company's chief executive said on Wednesday.
Source: Reuters
The U.S. economy rebounded sharply in the second quarter as consumers stepped up spending and businesses restocked, putting it on course to close out the year on a solid footing.
But the Federal Reserve on Wednesday reaffirmed it was in no rush to raise interest rates, even as it upgraded its assessment of the U.S. economy and expressed some comfort that inflation was moving up toward its target.[ID:nW1N0Q4007]
This has all helped to burnish the outlook for metals - at least for the near term.
"It's really the metals where people have a little higher confidence, and we share that," said analyst Dominic Schnider of UBS Wealth Management in Singapore.
"Maybe we already have 75 percent behind us and we're looking at the last 25 percent. The (positive) Chinese economy story might carry into the next quarter. But the game is structural deceleration, so bad news is waiting to come around again," he added.
Three-month copper on the London Metal Exchange
The most-traded October copper contract on the Shanghai Futures Exchange
Activity in China's vast factory sector likely expanded at the fastest pace in eight months in July, a Reuters poll showed on Wednesday, adding to evidence that the economy is regaining momentum after a burst of government stimulus measures.
However the International Monetary Fund said that China should lower its growth targets for next year, as part of a push towards safer and more sustainable growth. It also flagged the country's property slowdown as a cause for concern. [ID:nB9N0OL01V]
China's construction sector consumes a large portion of China's copper needs. China accounts for around 40 percent of refined copper demand.
In other upbeat news for the global economy, Euro zone economic sentiment unexpectedly improved in July despite the deepening crisis between the West and Russia over Ukraine, data showed on Wednesday.
LME aluminium
Aluminium's gains came as exchange stocks looked to be locked up for a while.
The London Metal Exchange's attempts to cut backlogs at warehouses with new rules are likely to be delayed again for several months after judges declined to make an immediate ruling on a case holding up the reforms.
The news also helped propel cash prices to the highest against benchmark prices since Dec. 2012.
Newmont Mining Corp
