MARKET OVERVIEW - Base Metals Decline as Fed Signals Fewer Rate Cuts in 2025

Forex - Base metal prices fell after the U.S. Federal Reserve indicated it would reduce the frequency of interest rate cuts for the next year, which supported the dollar. At the London Metal Exchange (LME), three-month copper dropped by 1.2% to $8,923 per ton at 06:32 GMT. The dollar index remained near a two-year high, making dollar-priced commodities more expensive for holders of other currencies. Yesterday, the U.S. central bank decreased interest rates by 25 basis points, and Fed Chair Jerome Powell noted that future cuts would depend on reducing high inflation, referencing economic changes under the Trump administration. At the Shanghai Futures Exchange, the January copper contract fell by 0.3% to 73,780 yuan per ton ($10,107.82) at the close of the Asian morning session. A trader assessed, "Frequent rate cuts like this year are unlikely next year. When the Fed slows its rate cuts, it tends to exert some pressure on riskier investments like commodities." At the LME, aluminum traded down 0.6% at $2,514 per ton, zinc fell 0.8% to $2,971.5 per ton, lead decreased by 0.5% to $1,971.5 per ton, tin was down 2.9% at $28,260 per ton, and nickel dropped 0.8% to $15,390 per ton. At the SHFE, aluminum fell 0.4% to 19,835 yuan per ton, tin decreased by 2.5% to 239,760 yuan per ton, nickel was down 1.1% to 122,930 yuan per ton, zinc declined by 1.3% to 25,095 yuan per ton, and lead fell 0.8% to 17,440 yuan per ton.