Base metals, broader markets up as Federal Reserve provides more direction

Base metals prices on the London Metal Exchange were up across the board on the morning of Thursday December 16, while those on the Shanghai Futures Exchange were mixed.

For the most part the metals and the broader markets seem to be undergoing a relief rally, relieved that the Federal Reserve provided more direction as to the extent and timing of its monetary policy. Federal Reserve to start tapering its bond purchases in January. US central bank also expects to make three rate hikes in 2022. Base metals Three-month prices on the LME were up across the board with gains averaging 1.2%, ranged between 0.3% for lead ($2,300 per tonne) and 1.8% on nickel ($19,440 per tonne), with copper up by 1.6% at $9,404.50 per tonne. This morning’s reaction is no doubt triggered by the Federal Reserve’s announcement, but is also in reaction to Wednesday’s aggressive sell-off that saw the metals close down by an average of 2%. The most-traded base...

Published

William Adams

December 16, 2021

08:52 GMT

London