LME copper prices climbed on Wednesday as investors bet that the Fed would not raise interest rates too quickly, leading to continued growth in the economy and demand for metals.
17:00 London time (01:00 Beijing time on January 27th)), LME copper for three-month delivery rose 1.2 per cent, or $115.5, to $9916.5 a tonne, up 0.8 per cent from the previous session.
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The Fed is expected to signal on Wednesday that it plans to raise interest rates in March as its main focus is to fight inflation.
"Market sentiment changed overnight, and I think that's because most market participants think the Fed will do something tonight, but it won't overdo it," said Daniel Briesemann, an analyst at Commerzbank.
"if the Fed takes a moderate stance, the economy will continue to recover from the low point of the novel coronavirus epidemic in 2020, which will support the overall level of demand for metals."
That optimism boosted stocks, while oil prices hit $90 a barrel for the first time in seven years because of tensions between Russia and Ukraine.
In china, the most actively traded copper futures on the shanghai futures exchange closed 1.7 per cent higher at 70730 yuan a tonne.
However, recent signs of physical demand in China are less optimistic. The Yangshan copper premium was last reported at $62 a tonne, the lowest level since August last year and down from $88 a month ago.
Aluminum for LME futures rose 0.1 per cent to $3094 a tonne and rose 2.1 per cent on Tuesday on concerns that tensions in Russia and Ukraine would affect supply.
Al Munro of Marex, the brokerage, said in a report that the market expected sanctions against Russia, but not as much as in 2018, when prices soared to a seven-year high. "compared with the impact of 2018. The market is already at a high level. "
