New York, November 2: Copper futures on the Chicago Mercantile Exchange (COMEX) rose on Thursday, closing at the highest value since the end of September, as the market interpreted that the Federal Reserve may no longer raise interest rates, causing the dollar exchange rate to fall, raising the Risky assets including copper rose.
As of the close, copper futures rose from 2.05 cents to 2.35 cents, with the most actively traded December 2023 copper closing at $3.6725/lb, up 2.35 cents or 0.64% from the previous trading day. It was the largest one-day percentage increase since October 27, and the closing price was the highest since September 29.
December copper futures traded in a trading range of $3.6565 to $3.6925.
So far this week, the benchmark copper contract has risen 0.73 percentage points.
The U.S. dollar exchange rate index closed at 105.977 points on Thursday, down 0.69% from Wednesday. A weaker dollar means copper becomes more attractive to buyers holding other currencies, supporting demand and prices.
The Federal Reserve kept interest rates unchanged on Wednesday and suggested that the recent rise in long-term U.S. Treasury yields has reduced the incentive to raise interest rates again. Affected by expectations that interest rates have peaked, U.S. stocks and risky assets such as industrial metals generally rose, while bond yields fell, reflecting improved investor risk appetite.
On Thursday, Wall Street stocks rose, with the S&P rising 1.89%, the Dow rising 1.70%, and the Nasdaq rising 1.78%. International crude oil futures rose more than 2%.
Analysts said traders are increasingly confident that the Federal Reserve has completed its monetary tightening policy given recent weak labor market data.
COMEX copper futures (near-term contract) have fallen 3.64% so far this year, but Thursday's closing price was 6.09% higher than the same period last year. For comparison, COMEX copper futures fell 14.58% in 2022, reflecting concerns about the global economic growth outlook. High inflation has prompted European and American central banks to actively raise interest rates to curb inflation, while rising borrowing costs have intensified the risk of economic recession. In the medium to long term, the green transition of the global economy and the electrification of the global economy could help boost additional demand for this widely used metal in the power and construction industries, while copper mine production has been disrupted.
On Thursday, the most actively traded December copper futures on the Shanghai Futures Exchange closed up 150 yuan at 67,410 yuan per ton. Shanghai International Energy Exchange (INE) January bonded copper rose 240 yuan to close at 60,000 yuan per ton.
On Thursday, the trading volume of COMEX copper futures was 87,234 lots, compared with 100,746 lots on the previous trading day; the short volume was 222,972 lots, compared with 222,566 lots on the previous trading day.
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