[ad_1]
Updates prices, adds analysts comment
Jan 4 (Reuters) – Benchmark London copper edged up in Asian hours on Wednesday, after three straight sessions of losses, but trading was confined to a narrow range ahead of the keenly awaited minutes from the U.S. Federal Reserve’s most recent meeting.
Three-month copper on the London Metal Exchange CMCU3 was up 0.2% at $8,336 a tonne, as of 0531 GMT.
On the Shanghai Futures Exchange, however, the most-traded February copper contract SCFcv1 fell 1.3% to 64,800 yuan ($9,405.07) a tonne.
A surge of COVID-19 infections in top metals consumer China, along with looming weak growth in major economies, have clouded demand prospects for metals.
“However, (the darkening economic outlook) will also increase the market’s expectations that the Fed will slow down the pace of interest rate hikes in the future,” Huatai Futures analysts said in a note.
“The likelihood of sustained dollar strength also diminishes accordingly.”
Minutes of the Fed’s Dec. 13-14 policy meeting, due at 1900 GMT, could provide clues on its future interest rate moves, analysts said.
In China, analysts said near-term metal prices were likely to remain volatile as the Spring Festival holidays later this month were expected to curb demand, but the anticipation of more economic stimulus from Beijing could provide support.
Among other metals, LME aluminium CMAL3 was up 0.2% at $2,315 a tonne, zinc CMZN3 dipped 0.7% to $2,980, lead CMPB3 declined 0.5% to $2,269.50, and tin CMSN3 dropped 0.7% to $25,300.
In Shanghai, aluminium SAFcv1 dropped 2.2% to 17,930 yuan a tonne, zinc SZNcv1 shed 0.6% to 23,285 yuan, tin SSNcv1 gained 0.2% to 208,490 yuan, and lead SPBcv1 fell 0.8% to 15,770 yuan.
Shanghai nickel SNIcv1 climbed 1.7% to 231,040 yuan a tonne following LME nickel’s strong overnight gains on expectations that a large short position maturing in January would have to be bought back, according to traders.
For the top stories in metals and other news, click TOP/MTL or MET/L
($1 = 6.8899 yuan)
(Reporting by Enrico Dela Cruz in Manila; Editing by Nivedita Bhattacharjee and Rashmi Aich)
((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.
[ad_2]
Source link
