Copper falls as US-China tensions curb risk appetite
Three-month copper on the London Metal Exchange (LME) declined 0.8pc at $5,319 a tonne at 0710 GMT.
Traders ea
- Three-month copper on the London Metal Exchange (LME) declined 0.8pc at $5,319 a tonne at 0710 GMT.
- Traders earlier in the session responded positively to prospects of a quick rebound in the global economy and as companies race to develop COVID-19 vaccines.
SINGAPORE: Copper prices fell on Wednesday as Sino-US friction over Hong Kong quashed initial euphoria following the easing of lockdown restrictions in many countries.
Three-month copper on the London Metal Exchange (LME) declined 0.8pc at $5,319 a tonne at 0710 GMT, while the most-traded July copper contract on the Shanghai Futures Exchange (ShFE) ended down 0.4pc to 43,640 yuan ($6,097.53) a tonne.
Renewed political unrest in Hong Kong in reaction to Beijing's proposed national security laws for the city hit Asian share markets and sparked risk-off sentiment.
"The shape of the Chinese economy is better. The United States starts to see less new infections and lots of European countries start to travel around. That's a big relief," analyst Helen Lau of Argonaut Securities said.
"But on the negative side, we don't know yet to what extent the US president will respond to the Hong Kong national security law."
Traders earlier in the session responded positively to prospects of a quick rebound in the global economy and as companies race to develop COVID-19 vaccines.
FUNDAMENTALS
OTHER PRICES: LME aluminium rose 0.2pc to $1,523 a tonne, while nickel dropped 1pc to $12,220 a tonne and zinc declined 1.8pc to $1,946a tonne.
SHANGHAI PRICES: ShFE aluminium climbed 0.9pc to 13,015 yuan a tonne, while nickel fell 1pc to 100,000 yuan a tonne and zinc declined 1.5pc to 16,075 yuan a tonne.
LME: The London Metal Exchange plans to consult members on whether its rules need to be changed to guard against market abuse and insider trading.
NICKEL: Australia's New Century Resources Ltd said it was in talks with Brazilian miner Vale SA to buy its nickel and cobalt operations in New Caledonia.
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