Copper price rises by 1.1 pc

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BUUMBA CHIMBULU writes

BENCHMARK copper prices has increased by 1.1 percent at US$6,170 a tonne, even as higher United States tariffs on more Chinese goods took effect on Friday last week.

Information from the financial market indicated that copper prices and most other industrial metals rose last week as investors held out hope that Washington and Beijing could still reach a trade agreement, even as higher U.S. tariffs on more Chinese goods took effect on Friday.

On Friday last week U.S president Donald Trump’s tariff increase to 25 percent from 201 percent  on US$200 billion  of Chinese goods.

While U.S and Chinese officials return to the negotiating table later on Friday, investors have quietly ratcheted up bets of a US interest rate cut, with markets now roughly expecting one rate hike by end of this year.

Benchmark copper was therefore up 1.1 percent at US$6,170 a tonne.

Oil prices were mostly steady on Friday, ending the week slightly lower as trade tensions stoked by a U.S. move to hike tariffs on Chinese goods overshadowed tightened global supplies and expectations of rising U.S. refining demand.

Brent crude oil settled 23 cents, or 0.4 percent, higher at US$70.62 a barrel, but posted a weekly loss of 0.3 percent.

On the money market, Cavmont bank Zambia indicated that the volumes of funds traded on the interbank continued to drop to close the week at K116 million from K440 million with liquidity levels slightly increasing to K1.127 billion from K1.072 billion.

The cost of funds traded on the interbank moved up to 9.92 percent from 9.91 percent on the day. 

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