BENGALURU- London copper rose on Monday, supported by a weaker dollar and strong economic data from top metals consumer China.
Three-month copper on the London Metal Exchange (LME) gained 0.5 percent to $9,402.5 a metric ton.
The dollar index eased 0.4 percent from a two-week high hit in the previous session.
A weaker dollar makes greenback-priced commodities cheaper for buyers holding other currencies.
China’s manufacturing activity expanded at the fastest pace in three months in February as new orders and higher purchase volumes led to a solid rise in production, an official factory survey showed on Saturday.
China’s economic health is crucial for base metals demand because the country is the world’s largest consumer and relies heavily on these metals for its vast manufacturing sector.
US President Donald Trump sowed confusion last week when he mentioned a possible April 2 deadline in connection with tariffs on Canada and Mexico, but later reaffirmed the Tuesday deadline.
He said he would add another 10 percent tariff on Chinese goods on Tuesday, effectively doubling 10 percent duties imposed on February 4.
“I think the markets are responding to further rhetoric about US tariffs on base metals and the hope that China’s NPC might yield further economic stimulus,” said Kyle Rodda, senior financial markets analyst at Capital.com.
