Copper Jumps on Weak US Jobs Data as Rate Hike Bets Dim
Copper prices surged for a second consecutive day after a weaker-than-expected US jobs report reduced expectations of a Federal Reserve rate hike this month. The soft US nonfarm payrolls data, which showed an increase of just 29,000 jobs, fell short of all economist forecasts, prompting traders to scale back their bets on a rate increase. This shift in rate expectations provided a boost to copper and other industrial metals, as higher rates typically weigh on non-income-generating assets like commodities.
On Monday, London Metal Exchange (LME) copper futures climbed as much as 0.9%, while Asian stock markets also moved higher. By 10:27 a.m. in Singapore, copper was up 0.6% at $14,347 a ton. Tin rose by 0.2%, and aluminum prices remained unchanged. Singapore iron ore futures, however, dipped 0.3% to $91.05 a ton.
The rally in copper comes after the metal experienced its steepest weekly decline since March, driven by signs of industrial strain in China. Despite this volatility, copper remains near record highs, supported by strong demand from sectors like data center buildouts and renewable energy. The market's liquidity may be thinner than usual due to the Golden Week holiday in China, which has kept many traders away.
Industrial metals often react quickly to changes in rate expectations, making them a key signal for broader market trends. Analysts suggest that the easing of rate hike expectations could continue to benefit copper and other industrial metals in the near term.