Core Viewpoint - The Federal Reserve is expected to initiate a series of interest-rate cuts starting next week, continuing through the end of the year, following lower-than-expected producer price inflation data [1][2]. Group 1: Interest Rate Cuts - Traders are betting on a quarter-point reduction in interest rates at the upcoming Federal Reserve meeting, with expectations of similar cuts continuing until year-end [2]. - The pricing of futures contracts indicates a consensus among traders regarding the Fed's policy rate adjustments [2]. Group 2: Producer Price Index - The producer price index (PPI) rose by 2.6% in August year-over-year, a decrease from a 3.1% increase in July, suggesting easing inflationary pressures [2].

Group 1 - LME copper prices declined due to a stronger US dollar and investor caution regarding tariffs, the Russia-Ukraine situation, and US interest rates [1][4] - On August 14, LME three-month copper fell by $37, or 0.38%, closing at $9,766.00 per ton [1][2] - The strong dollar, influenced by high US producer price inflation, makes dollar-denominated commodities more expensive for buyers using other currencies [4] Group 2 - Other base metals showed mixed performance, with three-month aluminum up by $3.50 (0.13%), zinc up by $19.50 (0.69%), and lead up by $1.50 (0.08%), while tin and nickel saw declines [2] - Market analysts are closely watching upcoming events, including the Jackson Hole meeting and the FOMC's release of July meeting minutes, for potential market-moving information [4] - There is potential for market upside, but a triggering factor is needed to break the current trading range of $9,500 to $9,900 [4]