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METALS-Copper drifts ahead of Fed; China hopes support

Published 16/03/2016, 01:04 pm
© Reuters.  METALS-Copper drifts ahead of Fed; China hopes support
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MELBOURNE, March 16 (Reuters) - Copper drifted in listless trade on Wednesday ahead of a U.S. Federal Reserve meeting where monetary officials are expected to affirm at least one further rate hike is on the cards this year.

FUNDAMENTALS

* Three-month copper on the London Metal Exchange CMCU3 edged down by 0.3 percent to $4,936 a tonne by 0146 GMT, extending losses from the previous session. Prices have found a floor around the $4,875 mark, while the approaching 200-day moving average ceiling at $5,023 flags a looming breakout.

* Shanghai Futures Exchange copper SCFcv1 traded flat at 37,370 yuan ($5,732) but still holding above the 200-day moving average.

* U.S. Federal Reserve policymakers are expected to leave short-term interest rates unchanged at a two-day policy meeting that began Tuesday, but also to signal that a rate hike is not too far off as long as the job market and inflation continue to improve. BHP Billiton BHP.AX BLT.L Chief Executive Andrew Mackenzie on Wednesday said the world's biggest miner sees iron ore prices falling, with oversupply set to keep them "lower for longer". Retailers in China are shedding staff, slowing expansion plans and seeing stocks pile up in warehouses as shoppers tighten their belts - a major headache for a country that has pinned its hopes on consumers to drive economic growth. Manufacturers are abandoning copper for its lighter and cheaper rival aluminium after a decade of technological innovation that is saving some companies hundreds of millions of dollars. For the top stories in metals and other news, click

TOP/MTL or MET/L

MARKETS NEWS

* Asian shares were mixed on Wednesday while the dollar dithered as markets waited anxiously for the Federal Reserve to provide guidance on the risk of U.S. rate hikes this year. MKTS/GLOB

DATA/EVENTS AHEAD (GMT)

1230 U.S. Consumer prices Feb

1230 U.S. Housing starts Feb

1230 U.S. Building permits Feb

1315 U.S. Industrial output Feb

1800 Federal Open Market Committee releases statement

1830 Fed Chair Janet Yellen holds news conference

PRICES

Three month LME copper

CMCU3

Most active ShFE copper

SCFcv1

Three month LME aluminium

CMAL3

Most active ShFE aluminium

SAFcv1

Three month LME zinc

CMZN3

Most active ShFE zinc

SZNcv1

Three month LME lead

CMPB3

Most active ShFE lead

SPBcv1

Three month LME nickel

CMNI3

Most active ShFE nickel

SNIcv1

Three month LME tin

CMSN3

Most active ShFE tin

SSNcv1

($1 = 6.5196 Chinese yuan renminbi)

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