Copper Leads Declines in Metals as Growth Concerns Intensify
(Bloomberg) -- Copper led most industrial metals lower as concerns of higher inflation and global growth outweighed a better-than-expected jobs report.
A gauge of the U.S. dollar registered its biggest gain in a week as investors turned to the haven currency amid those concerns, hurting metals’ appeal for foreign investors. Germany’s factory orders slumped 7.7% in August, in the third-biggest drop in 30 years, official data showed. U.S. companies added more jobs than forecast in September, the most since June, suggesting that ongoing hiring challenges are beginning to ease as more Americans return to the workforce.
“For industrial metals traders, downside risks are intensifying,” TD Securities strategists led by Bart Melek said in a note. “The global power crisis is expanding further into downstream sectors, raising downside risks to the world’s manufacturing engine.”
Copper dropped 1.4% to settle at $9,045.50 a metric ton on the London Metal Exchange at 5:51 p.m. local time. Nickel slipped 0.3% and aluminum fell 0.8%, while tin edged higher. Chinese markets are closed through Thursday for the National Day holiday break.
In ferrous markets, iron ore futures in Singapore were up 0.4% to $117.50 a ton amid thin trading. Prices of the steel-making raw material have almost halved since peaking in May and are expected to decline further on limited steel volumes and rising supply.
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