Shanghai copper prices ticked up on Wednesday as U.S. inflation data backed expectations for a Federal Reserve interest rate cut next month, although higher stocks kept gains in check.
The most-traded copper contract on the Shanghai Futures Exchange HG1! rose 0.43% to 79,280 yuan ($11,037.79) per metric ton by 0146 GMT.
The contract hit its highest level since July 25 at 79,510 yuan a ton earlier in the session.
Prospects of easing U.S. monetary policy boosted sentiment across the sector, ANZ analysts said in a note.
The consumer price index (CPI) rose 0.2% last month after gaining 0.3% in June, data showed on Tuesday. Economists polled by Reuters had forecast the CPI rising 0.2%.
Copper prices were also supported by news that China is planning to offer interest subsidies for businesses in eight consumer service sectors to boost consumption.
Gains were, however, capped by higher LME and SHFE copper stocks, said Matt Huang, an…
