Copper prices rose on Thursday after measures taken by China to support the economy served to reduce pressures on prices after data showed higher inventories, while markets asses rate decisions in the euro zone and China. 

Copper three-month futures rose 0.5% at the London Metals Exchange to $8459 a tonne , approaching a week high.

Copper demand declined this week as China's economy struggled while dollar's strength weighed on metals and made them costlier to holders of other currencies. 

Analysts at StoneX believe that coppers prices face a battle between supportive Chinese stimulus measures and suppressive dollar gains. 

A recent survey by Reuters expects China's central bank to support liquidity and maintain borrowing costs unchanged this week.

Yuan ended its local sessions today at its strongest position since September, as the Chinese central bank said it'll lower the required level of reserves that must be maintained by banks. 

However, copper inventories at the London's Metals Exchange surged to October 2022 highs.

As for other metals, aluminium rose 0.8% to $2236 a tonne, while tin rose 0.7% to $25860, as lead rose 0.6%, while nickel spiked 1.8% to $20430.

Otherwise, the dollar index rose 0.3% as of 16:16 GMT to 105.1, with a session-high at 105.3, and a low at 104.5.

Copper futures due in December rose 0.7% as of 16:09 GMT to $3.92 a pound. 

Euro extended its losses in American trade on Thursday for the second day against dollar, plumbing a four-month trough following the remarks by ECB President Christine Lagarde.

Lagarde said the interest rates have reached a constraining level that should be enough to control inflation in the medium term, which triggered speculation the ECB might be nearing the end of its policy tightening cycle. 

The remarks came after surprise decision by Bank of England to raise interest rates by 25 basis points to 4.50%, the highest since 2001. 

EUR/USD

EUR/USD fell 0.7% today to 1.0654, the lowest since May, with a session-high at 1.0752. 

The pair lost 0.25% yesterday, the first loss in four days away from a one-week high at 1.0768. 

Lagarde 

ECB President Christine Lagarde said that ECB members believes the current rates will help control inflation and bring it back to 2%. 

The ECB will continue to rely on data to determine the duration of the currently high interest rates.

The ECB cut growth forecasts this year from 0.9% to 0.7%, but expects the euro zone economy to rebound in the second half of the year.

There's no confirmation that interest rates have peaked yet. 

The ECB said at its policy press release that despite slowing inflation, it'll remain high for an extended duration.

The central bank asserted that upcoming decisions will rely heavily on data to decide the appropriate level and duration of high interest rates. 

Unexpectedly, the European Central Bank raised interest rates for the tenth meeting in a row, carrying on its battle against inflation.

The ECB raised interest rates by 25 basis points to 4.50%, the highest since 2001.

ECB President Christine Lagarde's remarks afterwards were quite bullish as well.

The main points of her press conference were as follows: 

Some members wanted to pause interest rate hikes but most members agreed on the hike.

Members agreed today that interest rates have now reached a very limiting state, and will be enough to control inflation.

The ECB believes the current rates will help control inflation and bring it back to 2%. 

The ECB will continue to rely on data to determine the duration of the currently high interest rates.

The ECB cut growth forecasts this year from 0.9% to 0.7%, but expects the euro zone economy to rebound in the second half of the year.

There's no confirmation that interest rates have peaked yet. 

The ECB's priority is maintaining price stability while avoiding recession.

Higher wages will continue to feed inflation, but tight credit conditions till pressure corporate profits and limit wages increases. 

The main feeder of inflation in the euro zone remains energy prices. 

Oil prices rose in American trade on Thursday, extending gains for the fifth straight session and scaling a ten-month high, with US crude trading above $90 a barrel for the first time since November 2022. 

The gains came amid expectations of severe market shortages in the final quarter of the year as both Saudi Arabia and Russia extend their voluntary production cuts for three more months.

Such cuts overshadowed concerns about over supply in the US as commercial crude stocks surged last week alongside crude production.

Global Oil Prices

US crude rose 1.4% to $90.03 a barrel, the highest since November 2022, while Brent added 1.6% to $93.42 a barrel, the highest  since November 2022 as well.

US crude rose 0.1% yesterday, while Brent added 0.3%, the fourth profit in a row on expectations of extreme market shortages this year. 

Shortages 

The International Energy Agency said the decision by Saudi Arabia and Russia to cut crude output by 1.3 million bpd until the end of the year will cause shortages in the fourth quarter of the year.

Bank of America analysts believe such cuts will send Brent prices above $100 by the end of the year.

Conversely, OPEC maintained its optimistic outlook for demand growth worldwide this year and next year,while also expecting flexible global economic growth despite higher interest rates.

OPEC specifically expects global demand on crude to rise by 2.25 million bpd in 2024, and to rise by 2.44 million bpd this year.

US Stocks

The Energy Information Administration reported a buildup of 4 million barrels in US crude stocks last week, while analysts expected a 2.2 million barrels drop. 

US production also surged by 100 thousand bpd to a total of 12.9 million bpd, the highest since March 2020.