Monday, 16 September 2019 08:37 GMT

Copper futures edge lower despite fresh China stimulus

(MENAFN - FxPro) Copper prices pushed lower on Monday, as sentiment failed to get a boost despite China rolling out its third interest rate cut in six months.

On the Comex division of the New York Mercantile Exchange, copper for July delivery shed 1.2 cents, or 0.4%, to trade at $2.909 a pound during European morning hours. Futures held in a range between $2.897 and $2.929.

On Friday, copper eased up 0.2 cents, or 0.09%, to close at $2.920. Futures were likely to find support at $2.888, the low from May 8, and resistance at $2.947, the high from May 6.

On Sunday, the People's Bank of China cut its benchmark interest rate by a quarter percentage point to 5.10% from 5.35%, in order to spur economic activity and boost growth.

It was the third rate cut since November, indicating that Beijing is becoming more aggressive in supporting the economy as its momentum slows and deflation risks rise.

The Asian nation is the world's largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere, gold futures for June delivery slumped $4.40, or 0.37%, to trade at $1,184.50 a troy ounce, while silver futures for July delivery slumped 7.0 cents, or 0.43% to trade at $16.39 an ounce.

The U.S. dollar index, which measures the greenback's strength against a
trade-weighted basket of six major currencies, was up 0.1% at 94.99 early on Monday.

The Labor Department reported Friday that the U.S. economy added 223,000 new jobs in April, just below expectations for jobs growth of 224,000. March's figure was revised down to just 85,000 from a previously reported gain of 126,000.

The unemployment rate fell from 5.5% to a near seven-year low of 5.4% last month, broadly in line with forecasts.

The mixed data underlined speculation that the Federal Reserve may hold off raising interest rates in the immediate future. However, investors conceded that higher rates still remain on the horizon.

In the week ahead, investors will be focusing on Wednesday's U.S. retail sales report for April, for fresh indications on the strength of the economy and the timing of a U.S. rate increase.

Copper futures edge lower despite fresh China stimulus


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