MARKET OUTLOOK - Copper in London Retreats from Two-Week High as Dollar Strengthens

Forex - Copper prices in London declined from their highest levels in nearly two weeks as the dollar gained some value amid ongoing concerns regarding China's demand outlook and potential U.S. tariffs. Three-month copper on the London Metal Exchange (LME) fell by 0.4% to $9,076 per ton at 06:25 GMT, after reaching its highest level since November 20 yesterday. The U.S. dollar rebounded from a three-week low, maintaining its position against other major rivals as traders considered the likelihood of the Fed lowering interest rates this month. Analysts indicated that the key questions for metals are largely related to what trade policies the U.S. will adopt and how China will respond. President-elect Donald Trump has threatened to impose significant tariffs on products imported from China. Yesterday, Beijing banned the export of products related to gallium, germanium, and antimony to the U.S. a day after Washington's latest crackdown on the country's chip sector. Investors are looking for further signs of monetary or fiscal support at China's upcoming Central Economic Work Conference at the end of this month. The January copper contract on the Shanghai Futures Exchange (SHFE) climbed 0.7% to 74,590 yuan per ton ($10,244.89). On the LME, aluminum increased by 0.1% to $2,611 per ton, nickel rose by 0.4% to $16,080 per ton, zinc decreased by 0.1% to $3,092 per ton, lead fell by 0.3% to $2,073.5 per ton, and tin increased by 0.4% to $28,925 per ton.