Metals-Copper holds as interest rate fears linger
XLB•Copper edges higher as rate fears weigh
Copper was little changed on Thursday as hotter-than-expected US economic data the previous day revived concerns of higher-for-longer interest rates, offsetting positive sentiment from data showing a sharp drop in copper inventories in China.
Benchmark three-month copper CMCU3 on the London Metal Exchange was up 0.09% at $14,631 a metric ton by 0735 GMT.
Meanwhile, the most-traded copper contract on the Shanghai Futures Exchange SCFcv1 closed 0.57% lower at 110,700 yuan ($16,494.08) a ton, ending a week shortened by the Mid-Autumn Festival holiday that started on Friday up by 1.14%.
U.S. business activity hit a more than five-year high in September, lifting rate expectations and weighing on copper, Galaxy Futures analysts said.
Rate traders are now pricing in a 72% chance that the US Federal Reserve will hike interest rates again in its October meeting, up from 49% a week earlier, according to the CME's Fedwatch tool.
