SINGAPORE, June 5 (Reuters) - Copper prices rose on Wednesday as the U.S. dollar hovered near a seven-week low, following comments from the Federal Reserve that pointed to possibility of an interest rate cut in the face of rising risks to trade and global growth.
The dollar eased on Wednesday, struggling to bounce off a seven-week low. A weaker dollar makes dollar-denominated metals cheaper for imports by countries using other currencies.
Fed Chairman Jerome Powell on Tuesday dropped his standard reference to the Fed being “patient” in approaching any rate decision, saying instead the central bank was watching fallout from the trade war and would react “as appropriate”.
“The subsequent dovish tone in his speech is likely to buoy investors in coming sessions,” said Daniel Been of ANZ in a note.
* Three-month copper on the London Metal Exchange edged up 0.2% to $5,888 a tonne by 0204 GMT, while the most-traded copper contract on the Shanghai Futures Exchange rose 0.5% to 46,500 yuan ($6,727.14) a tonne.
* London zinc rebounded 0.3% after touching its lowest since January in the previous session. Lead rose 0.4% but aluminium eased 0.2%.
* Shanghai zinc advanced 0.4%, lead rose 0.9% and aluminium edged up 0.1%.
* New orders for U.S.-made goods fell in April and shipments dropped by the most in two years, indicating continued weakness in manufacturing activity that could undercut the broader economy.
* China will consider strengthening controls on exports of rare earths, 17 chemical elements used in high-tech consumer electronics and military equipment, to protect and better use such “strategic resource”, its state planner said on Tuesday.
* The U.S. Commerce Department on Tuesday recommended urgent steps to boost domestic output of rare earths and other critical minerals, warning that a halt in Chinese or Russian exports could cause “significant shocks” in global supply chains.
* An estimated 5 million tonnes of lithium deposits have been found in China’s southwestern province of Yunnan, scientists said, potentially curbing the nation’s reliance on imports of the material, used in electric vehicle batteries.
* Panamanian President-elect Laurentino Cortizo said his government would review a copper mining contract awarded to a subsidiary of Canada’s First Quantum Minerals, casting uncertainty around a key project for the firm.
* Chinese President Xi Jinping said the country’s economy was stable, healthy and well placed to meet all risks and challenges, according to a transcript published by the Xinhua news agency.
* For the top stories in metals and other news, click or
* Asian shares tracked the Wall Street rally after U.S. central bank comments pointed to the increasing prospects of an interest rate cut, boosting investor sentiment and pushing the dollar lower.
0800 EU Markit Comp Final PMI May
0830 UK Reserve Assets Total May
1400 US ISM N-Mfg PMI May
1800 US Federal Reserve to issue the
Beige Book of economic condition
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin
ARBS ($1 = 6.9123 Chinese yuan)
Reporting by Mai Nguyen; editing by Gopakumar Warrier