Copper edges up on hopes for Chinese stimulus

Copper prices rose on Tuesday after declining earlier in the session as the dollar gained ground, however, losses were stymied by fresh hopes for further financial stimulus by China, the world's largest metals consumer.

Copper three-month futures fell 0.2% at the London Metals Exchange to $8363 a tonne, after a 0.5% profit in the earlier session.  

Saxo Bank's analysts said the markets were shook by recent remarks by ECB officials, which pointed to the ongoing risks of inflation, which will hinder early interest rate cuts. 

Such remarks underpinned dollar to a month high as investors also expect the Federal Reserve to delay its first rate cut by some measure. 

A stronger dollar makes dollar-denominated commodities costlier to holders of other currencies. 

However, copper is gaining ground from reports that China is preparing to issue more stimulus measures to support the slowing economy.

Copper futures at the London Metals Exchange fell 4% away from a five-month high, while at the Shanghai Exchange, copper March futures closed at $9,440 a tonne. 

Aluminium rose 0.2% at the London Exchange to $2208 a tonne, while tin traded flat at $24,790, as nickel slipped 0.4% to $16,155, while zinc declined 0.8% to $2537. 

Otherwise, the dollar index rose 0.8% as of 15:17 GMT to 103.2, with a session-high at 103.3, and a low at 102.7. 

In American trade, copper March futures rose 0.6% to $3.76 a pound as of 15:12 GMT.