Shanghai copper firms after 2 days of declines, growth woes cap gains

Madiha Shakeel December 26, 2018

SINGAPORE: Chinese copper closed marginally higher on Wednesday after two sessions of declines, with prices capped by concerns over slowing economic growth, which is expected to curb demand for industrial metals.

Investors are fretting the global economy is slowing just as monetary conditions are tightening, with political instability in the United States leaving open the possibility of a prolonged government shutdown.

COPPER: The most-traded copper contract on the Shanghai Futures Exchange closed up 130 yuan, or 0.3 percent, at 48,040 yuan ($6,979.21) a tonne.

EQUITIES: Asian equities were shaky on Wednesday following the plunge in Wall Street on Christmas eve in the face of a series of unnerving U.S. political developments, including a U.S. federal government shutdown and President Donald Trump’s increasingly hostile stance towards the Federal Reserve chairman.

STIMULUS: China will not resort to “flood-like” stimulus in monetary policy next year, although it will consider more cuts as needed to reserves held at commercial banks, local media quoted a central bank adviser as saying in a report on Tuesday.

TARIFFS: China plans to remove import and export tariffs in 2019 on a range of goods, including import taxes on alternative meals used in animal feed, to secure supplies of raw materials amid trade tensions with the United States and boosting outbound cargoes.

ENVIRONMENT: China will adopt more efficient and targeted measures during its campaign against pollution next year, but will not relax the targets or ease the crackdown on violators, the environment ministry said in a statement on Monday night.

RIO TINTO: Anglo-Australian miner Rio Tinto is preparing to take its Iron Ore Company of Canada business public in the first half of 2019 by dual-listing it in New York and Toronto, people familiar with the situation told Reuters.

Copyright Reuters, 2018

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