Sumary of METALS-Copper climbs on weak U.S. inflation, China data caps gains:
- By Zandi Shabalala2 Min Read(Updates throughout, changes dateline to LONDON)LONDON, Sept 15 (Reuters) – Copper firmed on Wednesday as the dollar dipped on lower-than-expected U.S. inflation figures which softened expectations for stimulus to be tapered soon, while a string of weak data from top metals consumer China capped gains.
- Copper and other base metals were mostly trading on macro economic factors such as the U.S. inflation which lowered the likelihood of the Fed withdrawing liquidity soon, said Saxo Bank analyst Ole Hansen.
- A weaker greenback makes dollar-denominated commodities cheaper for non-U.S. firms, a relationship used by funds to generate buy and sell signals.
- Capping gains in most metals was faltering factory and retail activity in August in China, owing to fresh coronavirus outbreaks and supply disruptions.
- The country accounts for about half of global metals consumption.