METALS-Base metals rebound as US industrial data stimulates appetite


BEIJING, October 19 (Reuters)Base metal prices rebounded on Wednesday as traders took comfort in strong U.S. factory output data for September that signaled that the manufacturing sector in the world’s largest economy remained on a reasonable basis.

Three-month copper on the London Metal Exchange CMCU3 was up 0.6% at $7,463 a tonne, as of 02:05 GMT.

Output at U.S. factories rose in September, driven by gains in durable and non-durable goods production despite efforts by the U.S. Federal Reserve to stifle demand – and reduce inflation – through higher interest rates students.

This settled some demand concerns as the market had priced in poor industry performance following the Fed’s interest rate hikes to rein in inflation.

Investors appeared to follow positive risk appetite on Wall Street following better-than-expected quarterly results from Goldman Sachs Group Johnson & Johnson JNJ.N and Lockheed Martin LMT.N.

LME aluminum CMAL3 rose 0.6% to $2,207 a tonne, lead CMPB3 advanced 0.5% to $2,024 a tonne, tin CMSN3 rose 1.5% to $19,750 per tonne, and zinc CMZN3 added 1.1% to $2,895 per tonne.

Investors were also awaiting economic indicators from China, the largest consumer of metals.

The world’s second-largest economy delayed the release of economic indicators slated for release this week, including its third-quarter gross domestic product data amid the ruling Communist Party’s week-long congress.

The most traded November copper contract on the Shanghai Futures Exchange SCFcv1 fell 0.8% to 62,320 yuan ($8,646.19) per ton.

SHFE aluminum SAFcv1 rose slightly by 0.1% to 18,350 yuan per ton, nickel SNIcv1 rose 2.8% to 184,750 yuan per ton, zinc SZNcv1 climbed 1.5% to 24,865 yuan per ton and tin SSNcv1 gained 1.8% to 170,980 yuan per ton.

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($1 = 7.2078 yuan)

(Reporting by Siyi Liu and Dominique Patton; Editing by Sherry Jacob-Phillips)

((Siyi.Liu@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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