London, August 8 news: On Wednesday, the London Metal Exchange (LME) copper futures fell because the US dollar exchange rate strengthened before the release of the US non-agricultural employment data.
As of 1600 GMT, the LME benchmark three-month copper fell 0.9% to $9,459 per ton.
On Wednesday, Fed Vice Chairman Richard Clarida hinted that the Fed may begin to reduce bond purchases later this year, which consolidated the view that the Fed will gradually reduce its fiscal support.After Clarida’s comments, the yield on the 10-year benchmark U.S. Treasury bond rebounded from a low level, and the exchange rate of the U.S. dollar also rebounded.
Analysts said the market is looking for clues that the Fed will reduce its financial support.If the Fed cuts its support ahead of schedule, it will affect the liquidity of financial markets.In general, the copper market on Wednesday did not fluctuate much, and market participants are waiting for Friday’s non-agricultural employment data to provide clearer guidance.
A private survey conducted on Wednesday showed that China’s service industry growth accelerated in July and hit the highest level since May, indicating that the Chinese economy is recovering steadily.Economists believe that China may need more monetary and fiscal easing policies to prevent summer floods and the delta mutation virus epidemic from slowing economic growth.
In China, the premium of Shanghai Yangshan Copper climbed to US$53 per ton, the highest level since April.This shows that China’s demand for imported copper has increased.
In Chile, the largest copper producer, the copper output of the state-owned copper mine Codelco reached 6 tons in June, an increase of 151600% year-on-year, while the copper output of BHP Billiton’s Escondida copper mine fell 14.9% year-on-year.
Judging from the closing situation of other metals, the three-month LME aluminum fell 0.7% to US$2,567 per ton; the price of zinc remained flat at US$2,969 per ton; the price of lead fell 1% to US$2,375 per ton; the price of tin remained stable , Reported US$34,630 per ton, and nickel prices rose 0.7% to US$19,249 per ton.