Copper rebounds on hopes for trade deal and Chinese growth
* GRAPHIC-2019 asset returns: http://tmsnrt.rs/2jvdmXl
(Updates with closing prices)
By Eric Onstad
LONDON, April 24 (Reuters) - Copper and other base metals
recovered on Wednesday from the previous day's losses, buoyed by
hopes for a U.S.-China trade deal and stronger economic growth
in top metals consumer China.
The White House said that top U.S. officials will travel to
Beijing for trade talks next week, with one leading official
expressing optimism about striking a deal.
Most industrial metals declined on Tuesday after comments by
Chinese officials dampened hopes for more stimulus measures.
"It looks like the market is shifting its focus more towards
the trade negotiations and also the brightening outlook for
Chinese economy in the second half of the year," said Julius
Baer analyst Carsten Menke.
"This is, however, already reflected in copper prices at
levels around $6,400-$6,500. In order to push prices higher from
here, there would need to be more positive data, more positive
surprises, which might be difficult to achieve."
Three-month copper on the London Metal Exchange
added 0.6 percent to $6,448 a tonne in closing open-outcry
activity, having shed 1.1 percent on Tuesday.
Investors will look to China's April purchasing managers
index (PMI), due next week, for further evidence on China's
economy after a strong figure in March, said Argonaut Securities
analyst Helen Lau.
* DOLLAR: Gains were capped by the U.S. dollar, which
was steady on Wednesday after rising to a 22-month high. A
stronger dollar makes dollar-denominated metals more expensive
for buyers using other currencies.
* ALUMINIUM STOCKS: LME aluminium inventories fell by 14,175
tonnes to 1,032,925 tonnes, the lowest since last October, daily
LME data showed on Wednesday.
LME aluminium rose 0.3 percent to finish at $1,872 a
tonne, supported by buying from computer-driven funds and
consumers, Alastair Munro at broker Marex Spectron said in a
LEAD TECHNICALS: LME lead on Tuesday showed a chart
pattern known as a "key reversal down", which could add further
bearish pressure, said Eddie Tofpik at broker ADM Investor
Services International. "This is actually quite significant, so
LME lead gained 0.4 percent to end at $1,925 a tonne
after dropping 1.2 percent in the previous session. It is the
worst-performing LME metal so far this year, having declined by
about 5 percent.
* SHANGAHI OPEN INTEREST: Surging open interest in zinc and
nickel on the Shanghai Futures Exchange points to large short
positions being established there, said Munro at Marex. For
instance, aggregate open interest in nickel has soared 31
percent since April 15, he said.
Nickel was up 0.2 percent at $12,410 at 1600 GMT
after touching a two-month low on Tuesday.
* PRICES: Zinc dipped by 0.2 percent to close at
$2,742 a tonne and tin shed 1 percent to $19,700, its
lowest since Jan. 8.
* For the top stories in metals and other news, click
(Additonal reporting by Mai Nguyen in Singapore
Editing by David Goodman)
First Published: 2019-04-24 03:47:30
Updated 2019-04-24 18:04:52
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