🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

METALS-Copper eases from 4-week high ahead of Trump news conference

Published 11/01/2017, 09:49 pm
Updated 11/01/2017, 10:00 pm
© Reuters.  METALS-Copper eases from 4-week high ahead of Trump news conference
CBKG
-
BHPB
-
HG
-

* Copper hits highest since Dec. 13 at $5,788.50/oz

* Markets brace for more clues on Trump economic plans

* GRAPHIC-2017 metal returns: http://tmsnrt.rs/2eqHKkL (Updates throughout, adds LONDON dateline)

By Jan Harvey

LONDON, Jan 11 (Reuters) - Copper edged lower on Wednesday ahead of a news conference by U.S. President-elect Donald Trump, having earlier hit a four-week high after upbeat Chinese and global economic data fuelled expectations for firm demand this year.

Three-month copper on the London Metal Exchange was down 0.2 percent at $5,750.50 a tonne at 1035 GMT, off a peak of $5,788.50, its highest since Dec. 13.

The metal surged more than 10 percent in the month following Trump's election to the U.S. presidency on Nov. 8, as his pledge to boost infrastructure spending unleashed a wave of investment in industrial commodities.

It softened into year-end as some investors tempered those expectations, but has since taken support from a wave of positive economic data from around the world.

"The strength that we've seen since November has mainly been on the prospect of increased fiscal spending in the United States," Danske Bank analyst Jens Pedersen said. "But we still need to see more specific plans (from Trump), so today's speech will be interesting for the copper market."

"The underlying story is that manufacturing indicators still look good, which could suggest that the global economy has got off to a good start in 2017," he added. "That is supporting prices also."

Further underpinning the metal are rising concerns over supply disruptions. Workers at Chile's Escondida copper mine - the world's biggest - have already rejected a wage offer from BHP Billiton (LON:BLT), raising the prospect of a strike. stocks retreated and the dollar steadied ahead of Trump's news conference at 1600 GMT. MKTS/GLOB

While his election campaign calls for tax cuts and more infrastructure spending have boosted many assets, including stocks and metal, his protectionist statements and a flurry of tweets have kept many investors from adding to risky positions.

"A number of market participants are likely to have been positioning themselves ahead of the press conference that Donald Trump has announced for today," Commerzbank (DE:CBKG) said in a note. "The market hopes that Trump will paint a clearer picture of his planned economic, trade and foreign policy."

Lead and zinc continued their push higher after the previous session's rally, buoyed by supply concerns. Processing fees for China's zinc smelters reached record lows last month as the supply from mines continued to dwindle.

LME lead CMPB3 was up 0.8 percent at $2,207 a tonne, having rallied nearly 6 percent in the last two sessions. Zinc CMZN3 was 0.5 percent higher at $2,734 a tonne.

LME nickel CMNI3 was 0.3 percent down at $10,585, while aluminium CMAL3 was up 0.1 percent at $1,751.50 a tonne, and tin CMSN3 was 0.1 percent higher at $21,170.

PRICES

Three month LME copper

CMCU3

Most active ShFE copper

SCFcv1

Three month LME aluminium

CMAL3

Most active ShFE aluminium

SAFcv1

Three month LME zinc

CMZN3

Most active ShFE zinc

SZNcv1

Three month LME lead

CMPB3

Most active ShFE lead

SPBcv1

Three month LME nickel

CMNI3

Most active ShFE nickel

SNIcv1

Three month LME tin

CMSN3

Most active ShFE tin

SSNcv1

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.