Metals: Copper edges higher as Fed shifts inflation target

Freeport Resources

28/08/2020 03:04

Aug 28 (Reuters) - Copper rose on Friday after the U.S.
Federal Reserve said it would promote higher inflation, a move
that could weaken the dollar and make greenback-priced
commodities more attractive.
    Three-month copper on the London Metal Exchange  CMCU3 
advanced 0.3% to $6,640 a tonne by 0143 GMT and was on track for
a third straight weekly gain, while the most-traded October
copper contract on the Shanghai Futures Exchange  SCFcv1  rose
0.5% to 51,790 yuan ($7,513.96) a tonne.
    The Fed on Thursday introduced new monetary policy which
would likely keep interest rate low and pressure the dollar
 .DXY , which has been hovering around a two-year
low. urn:newsml:reuters.com:*:nL1N2FT0PR
    
    FUNDAMENTALS
    * Freeport-McMoran Inc's  FCX.N  Indonesian unit would ease
a lockdown at its Grasberg mine after a protest by workers over
movements disrupted operations.  urn:newsml:reuters.com:*:nL4N2FT303
    * Activities at Indonesia's Weda Bay smelter complex, one of
the country's main nickel processing hubs, resumed on Thursday
after floods halted operations earlier this week.  urn:newsml:reuters.com:*:nL4N2FT35N
    * LME lead  CMPB3  rose 0.2% to $1,985.50 a tonne, while
zinc  CMZN3  rose 0.4% to $2,495.50 a tonne. In Shanghai, nickel
 SNIcv1  eased 0.4% to 119,220 yuan a tonne and aluminium
 SAFcv1  declined 0.6% to 14,515 yuan a tonne.
    * COLUMN: LME warehouse wars rumble on in the Malaysian
jungle - Andy Home.  urn:newsml:reuters.com:*:nL8N2FT3NH
    * For the top stories in metals and other news, click       
 TOP/MTL  or  MET/L      
        
    MARKETS NEWS    
    * Asian equities are likely to have a bumpy ride after U.S.
stocks scaled new peaks for a third straight day and bond yields
surged on the Federal Reserve's average-inflation strategy, as
well as a promising development in curbing the coronavirus
pandemic.  MKTS/GLOB     
        
    DATA/EVENTS (GMT)
    0645  France  GDP QQ Final              Q2
    0645  France  CPI (EU Norm) Prelim YY   Aug
    0900  EU      Consumer Confid. Final    Aug
    1230  US      Consumption, Adjusted MM  July
    1400  US      U Mich Sentiment Final    Aug    
        

($1 = 6.8925 Chinese yuan)

 (Reporting by Mai Nguyen; Editing by Subhranshu Sahu)
 ((mai.nguyen@thomsonreuters.com; +6568703518; Reuters
Messaging: mai.nguyen.thomsonreuters.com@reuters.net))
 
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