Copper rises as Fed plans no immediate rate hike

London copper prices advanced on Thursday after the U.S. Federal Reserve signalled no immediate hike in interest rates to sustain a recovery in economic growth and employment.

Three-month copper on the London Metal Exchange was up 1% at $9,555.50 a tonne, as of 0613 GMT, rebounding from two straight sessions of losses.

The most-traded December copper contract on the Shanghai Futures Exchange eased 0.3% to 70,190 yuan ($10,978.17) a tonne, tracking overnight losses in London.


The Fed said it would trim its massive bond-buying programme starting this month, but stay patient and wait for more job growth before raising interest rates.

Copper is often used as a gauge of global economic health due to its widespread application in many sectors. A delay in U.S. rate hikes is likely to sustain growth in the world's biggest economy.

Meanwhile, fundamental remained supportive for copper amid supply uncertainty and resilient consumption, said Jinrui Futures in a note.

Copper inventories in LME and ShFE warehouses remained at multi-years low levels, with the LME cash copper trading at a premium of $190 a tonne over the three-month contract , indicating tightness of nearby supply.