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March 28 (Reuters) – Copper extended gains in Asian trading hours on Tuesday as a deal to buy the assets of stricken U.S. lender Silicon Valley Bank (SVB) spurred risk appetite, while a weaker dollar also lent support to the metal, which is priced in the U.S. currency.
The overall mood, however, remained subdued amid worries about a credit crunch that could curb economic growth and metals demand.
Three-month copper on the London Metal Exchange CMCU3 was up 0.6% at $9,018 a tonne, as of 0255 GMT, following a 0.5% gain in the previous sesssion.
The most-traded May copper on the Shanghai Futures Exchange SCFcv1 rose 0.7% to 69,650 yuan ($10,134.89) a tonne.
“Copper mirrored gains across the commodities amid the improved risk appetite, but the gains were limited by lacklustre demand in China,” ANZ commodities strategists said in a note.
Regional U.S. lender First Citizens BancShares scooped up the assets of SVB on Monday, triggering a relief rally in financial markets worried about the banking sector turmoil. MKTS/GLOB
Downstream copper demand in top metals consumer China, meanwhile, dropped slightly last week due to “overseas macro factors” and rising prices, Huatai Futures analysts said in a note.
The U.S. dollar =USD slid for a second day against major peers on Tuesday as receding fears of a full-blown banking crisis sapped demand for the safest assets.
In other metals, LME aluminium CMAL3 edged up 0.3% to $2,366 a tonne, zinc CMZN3 was little changed at $2,911.50, while nickel CMNI3 gained 0.1% to $23,875. Lead CMPB3 steadied at $2,133, but tin CMSN3 dipped 0.4% to $25,315.
In Shanghai, aluminium SAFcv1 rose 1.1% to 18,670 yuan a tonne, zinc SZNcv1 climbed 0.7% to 22,670 yuan, nickel SNIcv1 advanced 0.6% to 182,450 yuan, lead SPBcv1 edged up 0.1% to 15,425 yuan, and tin gained 1.6% to 203,670 yuan.
For the top stories in metals and other news, click TOP/MTL or MET/L
($1 = 6.8723 yuan)
(Reporting by Enrico Dela Cruz in Manila; Editing by Janane Venkatraman)
((enrico.delacruz@thomsonreuters.com))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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