US jobs anticipation gives metals a boost to four-week high

US jobs anticipation gives metals a boost to four-week high
Copper, iron ore, zinc, nickel all heading higher.
JUN 06, 2024
By  Bloomberg

Copper led industrial metals in a price rally ahead of US jobs data, that should inform the Federal Reserve’s next moves on interest rates.

The red metal rose 1.5% to $10,077 a ton by 11:18 a.m. Shanghai time, while zinc and nickel also gained more than 1%. Iron ore futures in Singapore rose 1.4% to $108.25 a ton.

The LMEX Index of six metals had slumped to its lowest since May 8 on Wednesday, as trading sentiment turned more cautious in recent weeks. Investors are seeking more clarity on when the Fed might slash rates, and how signs of soft demand in China will play out.

Friday’s non-farm payrolls report in the US will be closely watched as the Fed looks for more evidence that inflation is moving toward its 2% target. A cooler jobs market might encourage a more dovish stance from the central bank. 

In China, concern lingered over metals consumption remaining relatively subdued amid elevated inventories of copper, aluminum and iron ore. Stockpiles of copper in Shanghai Futures Exchange warehouses were at their highest end-May level ever.

The rising inventory, driven by strong scrap flows and record prices, has “prompted recent copper bull hesitancy,” Citigroup Inc. analysts wrote in a note. 

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