Copper prices were steady on Wednesday after hitting their five-month high as mounting expectations of a U.S. interest rate cut later in the month and a weaker dollar provided support.

Three-month copper on the London Metal Exchange was unchanged at $9,981.50 by 1024 GMT.

The metal hit $10,038, its highest since March 26, at the open of the electronic market trading, which the LME delayed by 90 minutes due to a technical issue during the market pre-open.

“This was swiftly resolved, and all systems are now operating smoothly,” the LME said in an emailed comment.

In the U.S., jobs data due on Friday is expected to confirm a weakening labour market, strengthening the case for rate cuts, said ING commodities strategist Ewa Manthey. Lower interest rates improve prospects for growth-dependent metals.

However, concerns about the economic growth due to broad U.S. import tariffs persist and weigh on sentiment for the industrial metals, she said.

The dollar index was last down 0.1%, making dollar-priced metals more attractive for buyers holding other currencies.

Meanwhile, in top metals consumer China, services activity expanded at the quickest pace in 15 months in August, buoyed by firmer domestic demand and a rebound in foreign orders, a private-sector survey showed on Wednesday.

However, Chinese stocks largely ignored it, posting their biggest drop in a week, led by a retreat in the defence sector as investors booked profits following a major military parade.

Among other LME metals, zinc rose 0.5% to $2,879 a ton after hitting $2,900, the highest level since March 28.

Zinc is buoyed by lower inventories in the LME-registered warehouses (MZNSTX-TOTAL) and strong technical momentum, although fundamental support is still lacking, said Neil Welsh, head of metals at Britannia Global Markets.

LME aluminium was steady at $2,618.50, lead gained 0.4% to $2,000.50, tinadded 0.1% to $34,655, while nickel climbed 0.4% to $15,290.
Source: Reuters