Copper falls to 4-month low on growth fears, stocks rise

0
3
Copper falls to 4-month low on growth fears, stocks rise

LONDON, Oct 4 (Reuters) – Copper prices were at their lowest level in more than four months on Wednesday on worries about global growth, after bond yields rose on the prospect of higher that interest.

* At 1005 GMT, three-month copper on the London Metal Exchange (LME) was little changed at $8,004 a tonne, after falling to $7,924.50, the lowest since May 25.

* Copper and other metals recovered after the dollar index weakened, making commodities priced in the US currency cheaper for buyers using other currencies.

* Earlier, sell-offs in global government debt markets pushed the 30-year US Treasury yield to 5% for the first time since 2007.

Read Also:  The proposal to increase mortgage costs for higher scores has been well accepted in the US.

* “The panic over rising US yields is a big factor,” said Dan Smith of Amalgamated Metal Trading.

* “There are many reasons to be concerned about the slowdown in growth outside of China. I think there is a lot of complacency about the current situation in the United States,” he added.

* The LME spot copper discount to the three-month contract stood at $70 a tonne, close to a 31-year high of $77.50 hit on Tuesday, while stocks in LME warehouses hit their highest level in two years, at 167,600 tons.

* Among other base metals, aluminum on the LME fell 0.6%, to $2,277 a tonne; nickel gained 0.8%, to $18,880; zinc rose 0.4%, to $2,512.50; lead added 0.6%, to $2,130; and tin increased 1.2%, to $24,150.

Read Also:  Biden V Trump, The Unwanted Rematch For America's Soul

LEAVE A REPLY

Please enter your comment!
Please enter your name here