Copper prices fell on Thursday as a surprise interest rate hike by the Bank of Canada fueled fears of hawkish central banks, while investors and traders cautiously awaited top consumer China to roll out further stimulus measures.
Three-month copper on the London Metal Exchange was down 0.3 percent at $8,271.50 a ton, while the most-traded July copper contract on the Shanghai Futures Exchange eased 0.2 percent to 66,540 yuan a ton.
LME aluminum dipped 0.2 percent to $2,214 a ton, nickel eased 1.3 percent to $21,150 a ton, zinc declined 1.2 percent to $2,369.50 a ton, lead fell 0.5 percent to $2,035 a ton and tin dropped 1.1 percent to $25,375 a ton.
SHFE nickel shed 0.5 percent to 159,830 yuan a ton, tin lost 1.7 percent to 205,830 yuan a ton while aluminum rose 0.3 percent to 18,165 yuan a ton, zinc increased 1 percent to 19,675 yuan a ton and lead advanced 0.3 percent to 15,175 yuan a ton.
Canada and Australia surprised the markets by hiking their interest rates, while markets are now pricing in a higher chance of the Federal Reserve could stay hawkish in next week meeting and that US rates could stay higher for longer.
A higher interest rate environment could cause global economic growth to slow down and potentially hurt demand for metals.
