rose on the London Stock Exchange

Three-month copper contracts on the London Metal Exchange rose 0.8%.

The three-month copper contract on the London Metal Exchange rose 0.8% to $9,026 a tonne, reversing last month's drop below $9,000 a tonne.

This reflects market excitement that the US Federal Reserve may shift its focus from controlling inflation to boosting economic growth. Such expectations were fueled by weaker-than-expected US producer price data, which led investors to predict that cooling inflation could prompt a rate cut.

The US dollar index, which fell to a one-week low, also supported copper prices by making the dollar-denominated metal more affordable for buyers using other currencies.

However, copper’s gains were capped by ongoing concerns about the Chinese economy. Recent data showing Chinese bank lending fell to its lowest level in nearly 15 years in July has raised fears of a prolonged economic slowdown that could hurt industrial activity and demand for metals.

Notably, a strike by a powerful labor union at BHP’s Escondida mine in Chile has pushed copper prices higher. The strikers are aiming to get a bigger share of the profits from the world’s largest copper mine.

The metal used in electricity and construction was on track for a 3% weekly gain, its first in six weeks, as a strike at Escondida raised concerns about supply disruptions.

Escondida is the world's largest copper mine, accounting for nearly 5% of global supply by 2023. A wage deal at the mine could be signed if union members approve.

On the demand side, the outlook for China, the top consumer of metals, remains challenging, posing downside risks for copper, said Ewa Manthey, a commodities analyst at ING.

“The prolonged crisis in the property market has not yet bottomed out and we believe this will continue to put pressure on copper prices,” Manthey said, referring to the construction sector, which is a major copper consumer.

“And it’s not just weak demand in China that’s weighing on copper prices; the manufacturing sector appears weak globally, suggesting a slow recovery in demand for copper and other industrial metals,” she added.

Source: https://kinhtedothi.vn/gia-kim-loai-dong-ngay-19-8-tang-tren-san-luan-don.html