Copper falls as dollar rally weighs on industrial metals
CPER•Copper fell 0.25% to $14,379 a metric ton as the U.S. dollar rose 0.14% to 102.05, while higher oil prices also pressured the metal.
1. Copper declines
Benchmark three-month copper on the London Metal Exchange was down 0.25% at $14,379 a metric ton by 0300 GMT on Wednesday. The dollar index rose 0.14% to 102.05; higher oil prices also weighed on copper.
2. Other metals and drivers
Oil prices rose as markets weighed supply constraints from a storm heading for U.S. oil-producing regions and attacks by Yemen's Iran-backed Houthis on Saudi Arabia. The article said higher oil prices stoked inflation concerns and the prospect of interest-rate hikes, which can dampen economic activity and demand for copper. Aluminum rose 0.25%, while zinc and lead declined; nickel rose 0.11% and tin fell 0.09%.
3. Market outlook
Asian stocks softened, led by declines in AI-related shares, paring gains from a rally earlier in the week that had supported copper. S&P Global has said growth in AI and defense will boost copper demand by 50% by 2040. Markets were set to look to the Federal Reserve's release of minutes from its September policy meeting for signs of potential further rate hikes.
