Copper Rises as US Jobs Data Eases Fed Rate Hike Fears
Copper prices rebounded for a second consecutive session on Monday, as US employment data reduced concerns about aggressive Federal Reserve interest rate hikes. The relief came after nonfarm payrolls in the US increased by just 29,000 last month, falling short of all economist estimates compiled by Bloomberg. This weaker-than-expected jobs report led traders to scale back expectations of a rate hike this month, which would have negatively impacted non-yielding assets like commodities.
On the London Metal Exchange (LME), copper futures climbed as much as 0.9% during Monday's trading. The metal had experienced its sharpest weekly decline since March on Friday, following data indicating industrial weakness in China. Despite the recent volatility, copper prices remain near record highs, supported by strong demand from data centers and renewable energy sectors. Additionally, US tariff threats have prompted traders to stockpile hundreds of thousands of tonnes of copper, potentially tightening supply elsewhere.
By 10:27 AM Singapore time, copper was trading at US$14,347 per tonne on the LME, up 0.6%. Other metals saw mixed movements, with tin rising 0.2% and aluminum remaining unchanged. Meanwhile, Singapore iron ore futures dipped 0.3% to US$91.05 per tonne, possibly affected by reduced market liquidity due to the Golden Week holiday in China, during which Chinese traders are absent.