Metals track Wall Street higher

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Copper prices rose on Friday as a rally in Wall Street boosted sentiment for risky assets amid expectations of some Chinese government stimulus ahead of a key political meeting.

Three-month copper on the London Metal Exchange rose 1.2% to $7,666 a tonne by 0310 GMT, while the most-traded November copper contract on the Shanghai Futures Exchange increased 1.9% to 63,320 yuan a tonne.

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Wall Street had a volatile session on Thursday, closing more than 2% higher after an initial sell-off on higher-than-expected core inflation data proved short-lived, with technical support and short-position covering helping the rebound.

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The Chinese Communist Party congress starts on Oct. 16 and market participants have been hoping for more announcements of stimulus measures to boost the economy of metals’ biggest consuming market, said a metals broker.

Solid Chinese demand for copper, amid tight supply and an open import arbitrage, has helped Yangshan import copper premium surge to $137.50 a tonne, a one-year high and edging towards its highest since 2014.

However, with red hot inflation, the prospect of further U.S. rate hikes and a stronger dollar, the outlook for metals prices remains volatile.

LME zinc advanced 2.3% to $2,969 a tonne and tin increased 0.6% to $20,225 a tonne.

ShFE aluminum was up 1.9% at 18,740 yuan a tonne, nickel advanced 2.2% to 185,380 yuan a tonne, zinc rose 1% to 24,940 yuan a tonne and tin increased 1.3% to 176,700 yuan a tonne.

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DATA/EVENTS (GMT)

0645 France CPI (EU Norm) Final MM, YY Sept

0900 EU Total Trade Balance SA Aug

1100 EU Reserve Assets Total Sept

1230 US Import Prices YY Sept

1230 US Retail Sales MM Sept

1400 US U Mich Sentiment Prelim Oct (Reporting by Mai Nguyen in Hanoi; Editing by Savio D’Souza)