METALS-Copper up after Chinese stocks recover; nervous ahead of Fed

Wed Jul 29, 2015 12:23pm EDT
 
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* Antofagasta cuts annual production guidance

* Analyst sees Fed boosting dlr, pressuring commodities

* Coming Up: Fed policy statement at 1800 GMT (Updates with closing prices)

By Pratima Desai and Eric Onstad

LONDON, July 29 (Reuters) - Copper rose on Wednesday after the Chinese stock market rebounded, though investors were nervous ahead of a statement from the Federal Reserve, which could set the stage for a U.S. interest rate hike in September and a potentially firmer dollar.

Copper's rise was also fuelled by hopes of more stimulus in China, the world's top consumer of industrial metals.

Benchmark copper on the London Metal Exchange closed up 0.6 percent at $5,330 a tonne after a volatile session that saw it touching an intraday high of $5,398 and also slump into negative territory.

The metal used in power and construction, down about 15 percent so far this year, hit a six-year low of $5,164 on Monday when Chinese equities tumbled 8 percent.

Chinese shares bounced back by more than 3 percent on Wednesday, but the positive impact on metals faded later in the session as investors turned attention to a policy statement from the U.S. Federal Reserve due at 1800 GMT.   Continued...