NEW DELHI: London copper edged up on Thursday after U.S. President Donald Trump hinted at a potential trade deal with China, signalling a de-escalation with the top metals consumer, but a stronger dollar and weak U.S. growth data capped gains.
Benchmark copper on the London Metal Exchange (LME) rose 0.4% to $9,161.5 a metric ton as of 0611 GMT.
On Wednesday, Trump said he has “potential” trade deals with India, South Korea and Japan and that there is a very good chance that the U.S. will make a deal with China.
Meanwhile, the dollar advanced on Thursday on the back of weak U.S. data and as investors focused on signs that the trade war may be easing.
A stronger dollar makes greenback-priced commodities costlier for buyers using other currencies.
However, data showing the U.S. economy contracted for the first time in three years in the first quarter, due to a flood of imports as businesses raced to avoid higher costs from tariffs, dampened sentiment.
Copper falls over 2%, heads for worst month since November
The decline also underscored the disruptive nature of Trump’s often chaotic trade policy.
“Incoming data continues to signal an economic slowdown in the U.S. A weaker pace of hiring in the private sector and a larger-than-expected decline in GDP underscore growing recession risks,” ANZ Research said.
In other London metals, aluminium fell 0.1% to $2,397 a ton, zinc rose 0.08% to $2,594.5, lead lost 0.15% to $1,954.5, tin eased 0.2% to $31,300 and nickel shed 0.6% to $15,330 a ton.
Mainland China market will be closed for a five-day Labour Day holiday from May 1.