Copper edges up on EU stimulus deal, coronavirus vaccine hopes
- Gains, however, were capped by a steady rise in virus cases worldwide and lingering uncertainty over the final outcome of the vaccine trials.
SINGAPORE: Copper prices rose on Tuesday as the European Union leaders clinched a "historic" stimulus deal and as data from coronavirus vaccine trials boosted hopes for a swifter global economic recovery.
European Union leaders agreed on a massive stimulus plan for their economies at a pre-dawn meeting while early data from trials of three potential coronavirus vaccines showed positive results.
The most-traded August copper contract on the Shanghai Futures Exchange ended up 1pc at 51,900 yuan ($7,425.00) a tonne, while three-month copper on the London Metal Exchange inched up 0.2pc to $6,498 a tonne by 0705 GMT.
Gains, however, were capped by a steady rise in virus cases worldwide and lingering uncertainty over the final outcome of the vaccine trials.
"Copper is back to where it is fairly priced so it will be less volatile," said a copper analyst in China, who sought anonymity in line with company policy, adding that prices could rise further when the United States and Europe rein in the outbreaks.
FUNDAMENTALS
OTHER PRICES: LME aluminium rose 0.2pc to $1,667.50 a tonne, nickel edged up 0.5pc to $13,305, while ShFE zinc climbed 1.2pc to 17,870 yuan a tonne and ShFE lead closed 2.2pc higher at 15,075 yuan a tonne.
CHINA COPPER: Refined domestic copper prices fell 2.1pc to 51,375 yuan a tonne from a 25-month-high hit in the previous session, latest SMM data showed.
LEAD: Chinese domestic price of lead ingots fell to its two-week low at 14,750 yuan a tonne, as stockpiles in ShFE warehouses climbed.
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