Copper slips after 10-week rally as Fed rate-hike bets rise
XLB•Other base metals mixed on LME and SHFE
Among other LME metals, aluminium CMAL3 slipped 0.03%, nickel CMNI3 fell 0.36%, while zinc CMZN3 and tin CMSN3 edged up 0.06% each and lead CMPB3 gained 0.29%.
On the SHFE, aluminium SAFcv1 rose 0.06%, zinc SZNcv1 gained 0.97% and lead SPBcv1 advanced 0.74%, while nickel SNIcv1 slipped 0.04% and tin SSNcv1 eased 0.05%.
Copper edges lower after a 10th straight weekly gain
Sept. 7 (Reuters) - London copper was marginally lower on Monday after posting a 10th consecutive weekly gain supported by thin availability outside the U.S., as stronger-than-expected jobs data lifted expectations of a Federal Reserve rate hike.
Three-month copper on the London Metal Exchange CMCU3 fell 0.27% to $14,377 a metric ton by 0334 GMT, while the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 was flat at 109,110 yuan ($16,257.41) a ton.
U.S. nonfarm payrolls increased by 162,000 in August, well above economists' expectations of a gain of 56,000, while the unemployment rate held steady.
The data boosted expectations of a September Fed rate increase, though the dollar struggled to extend Friday’s gains in Asian trading on Monday.
Stronger jobs data and frequently shifting rate expectations have kept copper prices choppy, analysts at Chinese broker Galaxy Futures said in a note on Monday.
Supply tightness eases, but U.S. demand keeps pressure on inventories
Concerns over another LME short squeeze have eased as the COMEX-LME price gap narrowed to just above $300 a ton and the share of cancelled LME warrants declined, although the continued pull of metal into the U.S. could again leave short-position holders struggling to source metal for delivery, Galaxy Futures said.
