Copper jumps on Fed’s latest action

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SINGAPORE- Copper prices rose on Tuesday as the Federal Reserve’s latest move to support a struggling US economy hit by the COVID-19 pandemic boosted risk-on sentiment across markets.

Benchmark copper on the London Metal Exchange (LME) jumped 1.9 percent to $5,818 a ton, while the most-traded July copper contract on the Shanghai Futures Exchange (ShFE) advanced 0.6 percent to 47,030 yuan ($6,650.73) a ton.

The Fed widened its corporate bond buying program on Monday, while a weaker US dollar also made greenback-priced LME metals cheaper for buyers using other currencies.

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In Chile, the world’s top copper producer, copper miners’ unions said there had been an “alarming” increase in coronavirus cases among workers and called for a reform of big miners’ operational continuity plans.

“Copper has the tailwind of a potential Chile labor union halt in operations,” said a Singapore-based metals trader, adding that copper prices have recently moved in tandem with the rally in US equities.

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