The Chinese central bank announced on Friday it has decided to raise its interest rates and allow for greater flexibility for its currency, the yuan, to appreciate.
The news weighed on copper as it sparked fears demand from the world's biggest consumer of the metal China will slow going forward. However, copper recovered by the close as buyers were attracted by the lower prices.
It has continued its recovery today, supported also by another fall in LME stocks. The LME said in a daily report earlier copper stocks in its warehouses declined by 1,250 tonnes to total 140,085 tonnes.
At 10.45 am, in London, LME copper for three-month delivery was trading up at 7,350 usd per tonne against 7,273 usd at the close on Friday, when the metal touched an intra-day low of 7,090 usd -- its lowest since April 3. Elsewhere, zinc rose to 3,748 usd a tonne from 3,725 usd, lead climbed to 2,065 usd against 2,060 usd, aluminium edged up to 2,855 usd from 2,851 usd, and tin was flat at 14,000 usd.
Nickel was down at 50,000 usd a tonne against 50,400 usd amid a sharp rise in LME inventories. The LME said in a daily report earlier nickel stocks held in its warehouses rose 162 tonne to total 4,986 tonnes.
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