Copper dips as uncertainty counters upbeat Chinese factory data

Reuters

Copper dips as uncertainty counters upbeat Chinese factory data

10:58 sáng giờ GMT, 31 Tháng 10 2024

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Adds analyst comment and LONDON dateline, updates prices

By Eric Onstad

LONDON, Oct 31 (Reuters) -Copper prices edged lower on Thursday as worries about further economic stimulus in China offset an uptick in manufacturing data from the top metals consumer while investors also anxiously await the outcome of next week's U.S. presidential election.

Three-month copper CMCU3 on the London Metal Exchange (LME) was down 0.1% at $9,532 a metric ton by 1030 GMT.

Data showed that manufacturing activity in China expanded in October for the first time in six months, indicating stimulus measures are helping the battered economy turn a corner.

The Caixin manufacturing survey, which mostly covers smaller, export-oriented firms in China, is due on Friday.

"It was a good increase and if the Caixin number makes a turnaround, I think that will be a very good sign that will help metal markets," said Nitesh Shah, commodity strategist at WisdomTree.

The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 closed 0.2% down at 76,540 yuan ($10,748.79) a ton.

On a monthly basis, LME copper has lost 3% and SHFE copper 2.9%.

The market is in a holding pattern, awaiting concrete information about fiscal stimulus, Shah added.

Copper prices surged in late September to more than $10,000 a ton after a U.S. interest rate cut and the announcement of a series of Chinese economic support programmes.

Prices retreated, however, after the scale of the stimulus measures and a lack of detail disappointed market participants.

"We may not know more details of the stimulus until after the U.S. election because China may be keeping back some firepower in case trade tariffs are more aggressive under the new administration," Shah said.

China's top legislative body meets over Nov. 4-8 to consider potential measures to boost its economy.

Among other metals, LME aluminium CMAL3 rose 0.5% to $2,630 a ton, nickel CMNI3 added 0.1% to $15,825, tin CMSN3 was up 0.7% at $31,160 and zinc CMZN3 shed 0.7% to $3,065.50 while lead CMPB3 eased by 0.5% to $1,995.

($1 = 7.1208 yuan)

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Reporting by Eric Onstad
Additional reporting by Mai Nguyen in Hanoi
Editing by David Goodman

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