SHANGHAI- Base metals were mixed on Monday, trading in a narrow range, influenced by the optimism stemming from China’s policy meeting last Friday, but the potential for gains was tempered by a robust US dollar awaiting directional cues from US economic data.
China’s central bank announced plans to cut the reserve requirement ratio and interest rates at an opportune moment, as per a statement from last Friday’s quarterly monetary policy committee meeting.
China’s decision highlights a broader strategy to stimulate growth in the world’s second-largest economy, currently impacted by a struggling property sector affecting consumer wealth and household expenditure.
The dollar hovered near a two-year high on Monday, with traders eagerly awaiting this week’s US economic data. The key focus is December’s non-farm payrolls report, which could provide insights into the Federal Reserve’s interest rate plans.
A stronger dollar makes it more expensive for holders of other currencies to buy greenback-priced commodities.
Three-month copper on the London Metal Exchange (LME) was up 0.2 percent to $8,889.5 per metric ton.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) rose 1.1 percent to 73,800 yuan ($9,991.23)a ton.
