Copper prices were poised to finish the week in opposite directions on Friday, as investors considered the potential for U.S. interest rate cuts next year and the impact of the artificial intelligence boom.

The most-active copper contract on Shanghai Futures Exchange was little changed at 92,770 yuan ($13,175.87) a metric ton, as of 0330 GMT, and poised to end the week 1.03% lower.

The benchmark three-month copper on the London Metal Exchange dipped 0.12% to $11,764 a ton, but was on track to close the week 2.13% higher.

The pullback this week came after copper set record highs last week, as Shanghai copper reaches 94,030 yuan and the London benchmark rose to $11,952.

Traders are assessing the outlook for next year’s interest rates following a series of U.S. economic data releases for November.

U.S. consumer prices rose slower than the market expected in the year ended November, according to data released on Thursday, which provided some support to the market as it helped to boost hopes for rate cuts next year.

The Federal Reserve cut its interest rate by 25-basis-point last week, but signalled that the rate might not be reduced in near term amid statistics ambiguity due to the government shutdown.

Market is also focusing on scepticism on AI trading, after a tech stock slump last week and Oracle’s data centre partner Blue Owl Capital’s reported back-away from a $10 billion deal for its next facility amid concerns about rising debt and spending.

Copper is used widely in data centres.

Among SHFE base metals, nickel rose 2.61%.

The London benchmark nickel climbed nearly 1%.

The metal, used in stainless steel and batteries, has been rebounding from a slump earlier this week after Indonesia’s mining association said on Tuesday that the government of the top nickel-producing country would reduce annual nickel ore output to around 250 million tons.

In Shanghai, aluminium rose 0.27%, lead gained 0.68%, tin added 1.35%, and zinc was little changed.

Among other LME metals, aluminium added 0.09%, zinc nudged 0.11% upwards, lead rose 0.61% and tin was flat.

Friday, December 19

DATA/EVENTS (GMT)

0700 UK Retail Sales MM, YY November

0700 UK Retail Sales Ex-Fuel MM November

0745 France Producer Prices YY November

1500 EU Consumer Confid. Flash December

1500 US Existing Home Sales November

1500 US U Mich Sentiment Final December

($1 = 7.0409 Chinese yuan)
Source: Reuters