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london metal exchange copper
LONDON metal exchange copper , Jul 13 (Reuters) - Copper prices extended gains and hit three-week highs on Thursday on hopes that interest rate hikes in the United States would run out after inflation slowed, while the dollar's slide it also helped the metal shrug off weak export data from China.
Benchmark three-month copper on the London Metal Exchange was up 2.2% at $8.682 a tonne at 1604 GMT, after hitting its highest level since June 22 of $8,710 and surpassing its 100-day moving average of $8,599.
Copper hits three-week high on rate expectations
* Copper, which is used in the energy and construction sectors, is headed for its biggest weekly gain since late March, after a surprising slowdown in US inflation signaled interest rate hikes could go as far as end at the end of the month.
* The dollar index hit a 15-month low on Thursday, making US-denominated commodities less expensive for buyers using other currencies.
* "Risk appetite got a nice boost after weaker-than-expected CPI, but copper seems to lack the energy to go much higher at the moment," said Ole Hansen of Saxo Bank in Copenhagen.
* "Chinese exports are not having a good time and that reflects that the world economy is still somewhat weak. And the additional stimulus in China may not come this quarter, we may have to wait for the fourth." added.
* Data released Thursday showed Chinese exports fell last month at their fastest pace since the start of the COVID-19 pandemic three years ago, as a turbulent global economy puts increasing pressure on Chinese authorities to to adopt new stimulus measures.
* Among other base metals, aluminum on the LME rose 1.9% to $2,279 a tonne; zinc gained 1.8% to $2,469; lead rose 1.8% to $2,122.5; nickel fell 1.8% to $21,285; and tin fell 0.9% to $28,800.
* To view base metal futures prices:
- COPPER
- LEAD
- TIN
- NICKEL
- ALUMINUM
-ZINC
(Reporting by Mai Nguyen in Hanoi; editing in Spanish by Carlos Serrano)
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