BEIJING- Shanghai copper prices climbed on Monday, supported by Beijing’s latest measures to boost its stock market, although worries of more interest rate hikes by the US Federal Reserve capped gains.
The most-traded October copper contract on the Shanghai Futures Exchange was up 0.3 percent to 69,060 yuan ($9,482.10) per metric ton, after a 1.1 percent climb in the previous week.
The London Metal Exchange was closed for the Summer Bank Holiday.
China halved the stamp duty on stock trading effective Monday in the latest attempt to boost its struggling market.
The post-pandemic recovery has faltered in the world’s second-biggest economy, with industrial profit declining for a seventh consecutive month.
Also weighing on copper prices, the dollar held firm amid worries of more interest rate rises. A stronger dollar makes the greenback-priced commodity less attractive for buyers holding other currencies.
Copper prices will stay around current level amid fragile sentiment, underpinned by low inventories but any upward momentum would be capped by the prospect of a firm dollar and interest rate hikes, according to Zhang Weixin, an analyst at China Futures.
Fed Chair Jerome Powell said on Friday the central bank might need to raise rates further to ensure inflation was contained. – Reuters
