HBM:CC - Copper base metals drop on interest rate worries

2023-04-19 09:30:41 ET

Prices of copper and other industrial metals are falling Wednesday, as expectations of further interest rate hikes pressure growth-linked assets and lifts the dollar.

According to Reuters, benchmark copper on the London Metal Exchange ( HG1:COM ) recently traded -1.3% at $8,899.50/metric ton, while aluminum, tin, zinc, lead and nickel also were lower.

ETFs: ( NYSEARCA: CPER ), ( NYSEARCA: COPX ), ( JJC ), ( JJCTF ), ( JJT ), ( JJU ), ( JJN ), ( LD )

Precious metals prices also are sliding as markets readjust expectations of the Fed's rate-hike path .

"The market is once again focusing on the prospects for rates and the general appetite for risk," Saxo Bank's Ole Hansen told Reuters, adding that hopes for falling interest rates are fading .

Freeport McMoRan ( FCX ) -2% pre-market; other relevant tickers include ( SCCO ), ( RIO ), ( BHP ), ( HBM ).

Freeport McMoRan ( FCX ) shares are still attractive, and some analysts are predicting a very tight copper market could push the price up to $12K/ton later this year, Michael Fitzsimmons writes in an analysis posted recently on Seeking Alpha .

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