Aug 20 (Reuters) - London copper fell on Thursday following
a sell-off in equities and risky assets after the U.S. Federal
Reserve expressed worries about an uncertain economic recovery,
although some traders expect the weakness to be short-lived.
Three-month copper on the London Metal Exchange
declined 1.3% to $6,587 a tonne by 0705 GMT. The contract hit
its highest since June 2018 at $6,707 a tonne on Wednesday.
"It's because of the equities' sell-off triggered by a less
optimistic outlook by the Fed. Metals should resume their
uptrend soon. This sell-off is not deep at all," said a
Singapore-based metals trader.
"There will be continuous dollar devaluation. More hot money
will be piling into risky assets," the trader said.
Several Fed policymakers say the U.S. central bank may need
to ease monetary policy further to help nurse the economy
through the coronavirus outbreak, minutes from their policy
meeting last month showed on Wednesday.
Copper is often viewed as a gauge of the global economic
The most-traded September copper contract on the Shanghai
Futures Exchange closed up 0.1% to 51,980 yuan
($7,509.72) a tonne, tracking overnight gains in London.
* LME nickel dropped 0.3% to $14,675 a tonne, lead
fell 1.2% to $1,988 a tonne and in Shanghai, nickel
declined 0.5% to 116,130 yuan a tonne while aluminium
advanced 0.8% to 14,675 yuan a tonne.
* China kept its benchmark lending rate for corporate and
household loans steady as expected for the fourth straight month
at its August fixing.
* Australia-based copper miner MMG Ltd said its
half-yearly loss nearly doubled, while Australian miner South32
Ltd reported an 80.5% slump in full-year underlying
* Chinese state-backed metal research house Antaike said it
had advised Beijing to stockpile cobalt but the timing of any
state plans to purchase the metal was uncertain.
* For the top stories in metals and other news, click
($1 = 6.9217 yuan)
(Reporting by Mai Nguyen; Editing by Aditya Soni, Rashmi Aich