May 10 (Reuters) - Prices of most nonferrous metals rose on Friday, underpinned by renewed expectations of interest rate cuts in the United States following soft jobs data.
Three-month copper on the London Metal Exchange (LME) rose 0.8% to $9,987 per metric ton by 0133 GMT, while the most-traded June copper contract on the Shanghai Futures Exchange (SHFE) increased 0.9% to 80,470 yuan ($11,139.57) a ton.
"We maintain the view that base metals will find support in 2024 as the U.S. dollar weakens in response to Fed rate cuts later in the year," BMI analysts said in a note.
A weaker dollar makes greenback-priced metals cheaper to holders of other currencies.
The dollar index was nearly flat on Friday, after dropping 0.3% in the previous session, the biggest daily fall in more than a week.
Unemployment claims in the United States rose last week to the highest level in more than eight months, offering more evidence that the labour market was steadily cooling.
"Weak U.S. jobs reports raised the prospect of rate cuts," ANZ analysts said in a note.
A rate cut could help boost economic growth and physical demand for metal, while it might also lead to a softer dollar.
LME aluminium was up 0.3% at $2,570 a ton, nickel edged up 0.2% to $19,065, zinc advanced 0.5% to $2,924, while lead fell 0.4% to $2,225.50 and tin dropped 0.4% to $32,460.
SHFE aluminium rose 0.3% to 20,640 yuan a ton, nickel increased 1.2% to 143,160 yuan, tin jumped 1.1% to 262,270 yuan, while lead declined 0.4% to 17,940 yuan.
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DATA/EVENTS (GMT)
0600 UK GDP Estimate, Prelim March
0600 UK Manufacturing Output MM March
1130 Germany Publication of the account of the
monetary policy meeting of the
Governing Council of the European
Central Bank held on April 10-11
1400 US U Mich Sentiment Prelim May ($1 = 7.2238 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Subhranshu Sahu)
