Copper prices inch up

COPPER prices inched up in the early trade on Wednesday after a more than 1 percent drop in the previous session, as the dollar fell from a threeweek peak and investors awaited the minutes of the Federal Reserve's July policy meeting, the Barclays Bank daily report says.

According to the report three-month copper on the London Metal Exchange rose 0.3 percent to $5,725 a tonne, after closing down 1.1 percent in the previous session on concerns of weak demand in top metals consumer China.

The report says oil prices steadied on Tuesday on optimism U.S.-China trade tensions would ease and hopes major economies would take stimulus measures to ward off a possible economic slowdown, after falling earlier on concerns over future demand.

“Brent crude settled 29 cents, or 0.5 percent, higher at $60.03 a barrel, while U.S. crude rose 13 cents to $56.34 a barrel,” the report says.

The report states that Gold rose on Tuesday to firm above $1,500, recovering from a more than 1 percent slide in the previous session, as U.S. yields fell on increasing expectations for looser monetary policy to address fears of a global downturn.

“Spot gold was up 0.7 percent at $1,505.68 per ounce, after falling to a near oneweek low of $1,492.10 on Monday,” the report says.

And the report says Kwacha witnessed a slight depreciation due to continued demand for the greenback from importers.

“The market was fairly quiet trading at K13.07/13.10 in the morning session before closing the day at K13.10/13.15 on the bid and offer respectively. Near term, the local unit is anticipated to trade steady with factors of demand and supply being the main drivers of the currency’s next move factoring in corporates still converting for their salaries,” the report says. The report says the liquidity levels in the market continued to decrease in Tuesday’s session from K205.34 million to K196.20 million, with the volumes of funds traded on the interbank slightly increasing to K125 million from K85 million seen the previous day.

“The daily weighted average interbank lending rate dropped to 10.52 percent from 10.63 percent,” the report says.