LONDON- Copper prices rose for a third day on Wednesday as China, the biggest consumer, stimulated its economy and after Pfizer said a three-shot course of its vaccine could neutralize the new Omicron coronavirus variant.
China’s yuan shot to its strongest level against the US dollar since 2018, making dollar-priced metals cheaper for Chinese buyers, after a cut in bank reserve requirements released 1.2 trillion yuan ($188 billion) in long-term liquidity.
However, US and European markets and oil prices stalled after two days of gains.
Benchmark copper on the London Metal Exchange (LME) was up 0.5% at $9,645 a ton.
The metal used in power and construction is up more than 20% this year, but has traded between around $9,000 and $10,000 since reaching a record high of $10,747.50 in May.
Omicron triggered a sharp reduction in speculative bets on higher prices, and with the market lacking direction, investors are cautious, said Saxo Bank strategist Ole Hansen. — Reuters
