Copper Rises, Paring Weekly Loss, as Investors Position for Fed
Copper rose, paring a weekly decline, amid speculation that the U.S. Federal Reserve will scale back stimulus this month and after euro-area factory output missed estimates.
Metal for delivery in three months on the London Metal Exchange rose 0.3 percent to $7,078.50 a metric ton at 11:04 a.m. in Shanghai. The price fell 1.1 percent this week, touching $7,025 yesterday, the lowest intra-day level since Aug. 8.
The Fed will decide to cut its $85 billion in monthly bond purchases this month, according to 65 percent of economists surveyed by Bloomberg from Aug. 9-13. The Federal Open Market Committee holds a two-day meeting on Sept. 17-18. Industrial production in the 17-nation euro area fell more than economists forecast in July.
“Investors are awaiting the outcome of the Fed meeting next week, betting a tapering is very likely,” said Xu Liping, an analyst at HNA Topwin Futures Co. in Shanghai. “The data from Europe reduces buying interests.”
Factory output in the euro region fell 1.5 percent from June, when it gained 0.6 percent, the European Union’s statistics office said yesterday. That’s more than the 0.3 percent contraction forecast in a Bloomberg News survey.
The contract for delivery in December fell 0.4 percent to 51,210 yuan ($8,369) a ton on the Shanghai Futures Exchange. Futures for delivery in December on the Comex in New York rose 0.4 percent to $3.2135 a pound.
On the LME, aluminum fell, while zinc rose. Nickel, and lead were little changed.
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