Industrial metals fell in London as a cautious mood took hold across markets after higher-than-expected jobless claims and strong producer price data in the US.
US wholesale inflation unexpectedly accelerated in November on a surge in egg prices, while other categories suggested a muted increase in the Federal Reserve’s preferred price gauge.
The inflation and unemployment claims data were among the last key indicators to be published before the Fed’s policy meeting next week. The US central bank is widely expected to cut its benchmark rate for a third straight gathering, but signal a slower pace of reductions in 2025 in response to the ongoing inflation threat.
Copper prices dropped more than 1% on the London Metal Exchange after the data, as equity markets lost steam and the dollar inched higher. Nickel was the only metal to rise on the LME, as it held on to earlier gains as China’s leaders signaled additional stimulus measures during a key economic policy meeting.
Pledges by leading officials from the Asian nation to raise the budget deficit ratio, cut interest rates and lower reserve requirements for banks are stoking hopes that the world’s biggest consumer of raw materials will counter slowing domestic growth and potential trade frictions with the incoming Trump administration.
Metals had already been lifted in the run-up to a two-day huddle of the Central Economic Work Conference, following earlier hints from the Politburo, the country’s top decision-making body, that bolder stimulus would be forthcoming.
Copper was 1.1% lower at $9,090 a ton as of 4:25 p.m. local time, while zinc, lead and tin all lost more than 1%. Nickel was 2% higher.
(By Mark Burton and Katharine Gemmell)
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