Copper rose on Tuesday, tracking upbeat sentiment in the US markets on prospects that the Federal Reserve can achieve a soft landing for the economy, but gains were limited as weak China data clouded demand outlook in the biggest consumer.
Three-month copper on the London Metal Exchange was up 0.8 percent at $8,040 a ton, having dropped 2.8 percent in the previous session, the steepest daily decline in a month.
The most-traded September copper contract on the Shanghai Futures Exchange climbed 0.6 percent to 62,310 yuan ($9,180.38) a ton.
“The price movement is just in line with macro numbers, like high yield debt in the United States and US equity markets. The only thing keeping it from moving higher in larger steps is the weak China demand,” said a trader.
US stocks rose on Monday, with growth shares extending a recent rally, helped last week by signs that inflation may have peaked in July.
“I think we will have a small window for a relief rally today until tomorrow, then soften for the rest of the week as US stocks take a breather from the recent rally and drag the rest of the risky assets down with it,” the trader said.
LME aluminum increased 1.4 percent to $2,424.50 a ton, zinc was up 1 percent at $3,598 a ton, while lead fell 0.3 percent to $2,171 a ton. – Reuters
