MANILA, Jan 27 (Reuters) - Benchmark London copper and most other base metals fell on Thursday after the U.S. Federal Reserve signalled a hike in interest rates as early as March, lifting the U.S. dollar to near a five-week high.
A U.S. interest rate hike could trim liquidity in financial markets and dampen prospects of economic recovery, while a firmer dollar makes greenback-priced metals more expensive to holders of other currencies.
Three-month copper on the London Metal Exchange was down 0.9% at $9,824 a tonne, as of 0144 GMT.
Copper on the Shanghai Futures Exchange , however, rose 0.5% to 70,480 yuan a tonne.
* In a news conference on Wednesday following a Federal Open Market Committee meeting, Fed chief Jerome Powell said "the committee is of a mind to raise the federal funds rate at the March meeting assuming that the conditions are appropriate for doing so", as the U.S. central bank seeks to tame inflation. read more
* The United States has set out a diplomatic path to address sweeping Russian demands in eastern Europe, as Moscow held security talks with Western countries and intensified its military build-up near Ukraine with new drills. read more
* The leader of an Andean community said on Wednesday that residents will block a controversial road used by MMG's (1208.HK) Las Bambas mine to transport its metal starting on Thursday, a route that is a flashpoint of local protests.
* The U.S. Department of the Interior canceled two mineral leases for Antofagasta Plc's (ANTO.L) proposed Twin Metals copper and nickel mine in Minnesota on Wednesday, effectively killing the project and handing a major win to environmentalists. read more
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MARKETS NEWS
* U.S. stocks retreated on Wednesday, erasing strong gains, after the Federal Reserve signaled an interest rate hike could be coming soon, while supply concerns stemming from tensions between Russia and Ukraine saw oil prices touch highs not seen since 2014.
DATA/EVENTS (GMT)
1330 US Durable Goods Dec
1330 US GDP Advance Q4
1330 US Initial Jobless Clm Weekly
PRICES Three month LME copper
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