Copper, zinc fall as strong dollar weighs on industrial metals
XLB•Rate expectations add pressure across base metals
Rising rate-hike expectations also weighed on base metals. Rate traders are pricing in a 68% chance that the U.S. Federal Reserve will raise interest rates in its September meeting, up from 40% a week earlier, according to the CME's Fedwatch tool.
Hawkish comments from Fed Chair Kevin Warsh last Friday also raised rate-hike expectations. Higher interest rates can weigh on metal demand by dampening economic activity.
Among LME metals, aluminium CMAL3 lost 0.49%, lead CMPB3 fell 0.42%, nickel CMNI3 dipped 0.27% and tin CMSN3 lost 0.81%.
Among SHFE metals, aluminium SAFcv1 dipped 0.19%, lead SPBcv1 added 0.15%, nickel SNIcv1 lost 1.05% and tin SSNcv1 dropped 2.39%.
($1 = 6.7224 Chinese yuan)
Supply tightness had supported metals in recent months
Copper and zinc have been supported by concerns about supply tightness over recent months, with both recording their best month since January in August.
