July 29 (Reuters) - London copper prices hit a three-week
high on Friday on a weaker U.S. dollar and hopes of demand
recovery in top consumer China, although mounting recession
fears still kept it on track for a fourth consecutive monthly
Three-month copper on the London Metal Exchange rose
1% to $7,837 a tonne, as of 0737 GMT, its highest since July 8.
The most-traded September copper contract on the Shanghai
Futures Exchange ended daytime trading up 1.7% to
60,100 yuan ($8,928.70) a tonne.
China's factory activity likely expanded at the fastest pace
in a year in July, a Reuters poll showed on Friday, as
production in COVID-hit manufacturing hubs resumed after
emerging from lockdowns.
The dollar index fell 0.5% to a more than three-week
low, making greenback-denominated metals less expensive for
other currency holders.
Copper, which is used as a gauge of economic health by
investors, has declined by about 5.2% this month, tracking its
longest monthly run of losses since August 2015.
Sharply higher interest rates, red-hot inflation and a
prolonged energy crisis are leading to conviction that the world
economy is headed inexorably towards recession.
DATA: The U.S. economy unexpectedly contracted in the second
quarter, raising the risk that it was on the cusp of a
"Despite the dovish Federal Reserve boosting anticipatory
assets like stocks, commodities trade in the real world of gloom
and recessionary doom," said Stephen Innes, managing partner at
SPI Asset Management.
"I think the Fed will stay on its mission to tame inflation
at the expense of growth and that will limit copper's top side
COVID: China is sticking to its "dynamic zero-COVID" policy,
state media said after a high-level meeting of the ruling
Communist Party on Thursday.
FACTORY OUTPUT: Japan's factories ramped up output at the
fastest pace in more than nine years in June as disruptions due
to China's COVID-19 curbs eased.
NICKEL: Russian metals producer Nornickel said on
Thursday its second-quarter nickel production fell by 6%
quarter-on-quarter to 48,472 tonnes.
PRICES: LME aluminium rose 0.8% to $2,476.50 a
tonne, zinc jumped 1.9% to $3,218.50 and lead
gained 1% to $2,017, while nickel eased 0.1% to $21,910
and tin fell 0.4% to $24,255.
Shanghai aluminium gained 2.2%, zinc rose
4%, nickel climbed 2%, lead added 0.4% and tin
($1 = 6.7421 Chinese yuan)
(Reporting by Brijesh Patel in Bengaluru; editing by Subhranshu
Sahu and Jason Neely)