Copper rebounds from one-month low after US jobs data

By: News Team

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 Copper prices rebounded from their lowest level in more than a month on Friday, after U.S. jobs data spurred optimism that the Federal Reserve may moderate its aggressive path of rate hikes. rates.

* Prices had previously fallen as top metals consumer China extended COVID-related restrictions raising concerns about a potential recession.

* Benchmark copper on the London Metal Exchange (LME) rose 0.7% to $7,648 a tonne by 1615 GMT, after hitting its lowest since July 27 at $7,510.

* Data showed US employers hired more workers than expected in August, but moderate wage growth and a rise in the unemployment rate to 3.7% could ease pressure on the Fed to decide on a third rate hike. interest rate of 75 basis points this month.

* “The labor share number has also improved, a very encouraging sign for traders,” said Naeem Aslam, chief market analyst at Ava Trade.

* Prices came under pressure after some districts in southern China’s tech hub Shenzhen extended COVID restrictions on Friday but stopped short of a full lockdown, while a lockdown was decided in the megalopolis of Chengdu. lockdown late Thursday.

* Aslam said restrictions in China would have an impact on both supply and demand. “If the smelters are closed, there will be less supply, but it also means less consumption, so it’s a double-edged sword,” he said.

* Market players are increasingly concerned about the impact of the European energy crisis on demand, according to an ANZ study. The EU is likely to impose restrictions on gas consumption in heavy industry if shortages persist, and these demand concerns are outweighing supply problems, he added.

* News that Dutch maker Aldel was to suspend remaining capacity at its Farmsum plant, citing persistently high energy prices and a lack of government permission, contributed to higher metal prices.

* In other base metals, three-month LME aluminum rose 0.2% to $2,299.50 a tonne; nickel gained 1.1% to $20,530; and tin added 0.3% to $21,120, after hitting a 20-month low, but zinc fell 3.7% to $3,140; and lead fell 0.2% to $1,896.50.

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