NEW DELHI- London copper prices nudged higher on Thursday after a selloff in the previous session but a steady US dollar and uncertainty over stimulus measures from top consumer China kept gains in check.
Three-month copper on the London Metal Exchange (LME) was up 0.3 percent at $9,218 per metric ton.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) eased 0.03 percent to 75,470 yuan ($10,388.73) a ton.
The US dollar traded in a narrow range on Thursday after hitting a two-week high in the previous session, supported by a rise in US Treasury yields, even as market players bet the US Federal Reserve will cut interest rates next week.
A strong greenback makes dollar-priced metals more expensive for holders of other currencies.
Separately, Reuters reported China was considering allowing a weaker currency next year as the country braces for higher trade tariffs in a second Donald Trump presidency.
“Reports that China is considering a weaker CNY (yuan) to defend against US import tariffs weighed on the market sentiment, as this could lead to capital outflows and a declining equity market,” ANZ Research said in a note.
The focus is now on China’s Central Economic Work Conference meeting this week for more clarity on key targets and potential economy stimulus measures for next year.
