Staff of Reuters Read for 2 minutes 14 JULY (Reuters) – Copper prices fell on Wednesday as inflationary pressures in the United States fuelled fears that the world’s largest economy may tighten its monetary policy sooner than expected. As of 0315 GMT, three-month copper on the London Metal Exchange was down 0.3 percent at $9,385 a tonne, while the Shanghai Futures Exchange’s most-traded August copper contract was down 0.6 percent at 68,690 yuan ($10,609.64) per tonne. After U.S. consumer prices rose by the highest in 13 years last month, the dollar hit a three-month high against the euro and a one-week high against the yen, fueling bets on faster monetary policy tightening than the Federal Reserve policymakers have so far signaled. Metals priced in greenbacks become more expensive and less enticing to holders of other currencies as the dollar strengthens. FUNDAMENTALS* Premier Li Keqiang announced that China, the world’s largest metals user, will adopt “comprehensive steps” to reduce increasing commodity prices. * LME aluminium down 0.4 percent to $2,525.50 a tonne, nickel fell 1.3 percent to $18,535 a tonne, and zinc fell 0.5 percent to $2,919 a tonne. * ShFE aluminium increased 0.4 percent to 19,260 yuan a tonne, nickel fell 1% to 138,510 yuan a tonne, zinc fell 1.1 percent to 21,865 yuan a tonne Asian stocks tumbled after data showing the largest increase in US inflation in 13 years fueled market expectations that the Federal Reserve will withdraw pandemic-era stimulus sooner than expected. DATA/EVENTS (GMT)0600 UK CPIT YY June0630 India WPI Inflation YY DATA/EVENTS (GMT)0600 UK CPIT YY June0630 India WPI Inflation YY June1600 Before a virtual HouseFinancial Services Committee hearing, US Federal Reserve Chairman Jerome Powell speaks on the Semiannual Monetary PolicyReport to Congress.1800 The US Federal Reserve issues the Beige Book of economic conditions. 6.4743 yuan = $1 Mai Nguyen contributed reporting from Hanoi, and Sherry Jacob-Phillips edited the piece./n
Read More
