Copper prices experienced a slight increase on Thursday due to an unexpected surge in China's Q3 GDP growth which recorded a 4.9% increase. However, the rise was tempered by a strong U.S. dollar. The London Metal Exchange's (LME) three-month copper saw an ascent of 0.1%, settling at $7,983 per metric ton. In contrast, the Shanghai Futures Exchange's November copper contract declined by a marginal 0.02%, closing at 66,480 yuan ($9,090.54) per ton.
Sucden Financial noted the base metals market's positive reaction to China's economic data, suggesting potential mean-reverting strategies in the future. The firm's observations come amidst a backdrop of other metals also experiencing shifts due to the strengthening U.S. dollar.
The strengthened dollar, buoyed by expectations of the U.S. Federal Reserve maintaining high rates, affected other metals as well. LME zinc fell by 0.3%, while aluminum CMAL3 rose by 0.4%. Similarly, SHFE aluminium saw an increase of 0.5%.
Treasury yields are escalating as markets eagerly anticipate a speech by Fed Chair Powell. Other metals reacted to the market conditions with varying degrees of change: lead CMPB3 eased by 0.3%, tin CMSN3 dropped by 0.7%, and nickel SNIcv1 decreased by 0.6%. Meanwhile, zinc SZNcv1 fell by 0.05%, lead SPBcv1 rose by 0.3%, and tin SSNcv1 gained 0.2%.
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