London copper wobbles with risk appetite in wake of Trump health care setback

MELBOURNE — London copper slipped for a third day on Monday as risk appetite fell after President Donald J. Trump’s failure to push through health care reform fanned concerns over his ability to realize his economic agenda.

The “Trump trade” that pumped up exuberance and boosted assets including metals was reversing, said economist Amy Li at National Australia Bank in Melbourne, although she expected prices to be well supported on fundamentals.

“On copper there is so much uncertainty — Escondida, Indonesia, the Philippines — and on the demand side it seems China isn’t doing too badly, especially given upbeat global sentiment and improving growth in advanced economies.”

London Metal Exchange ( LME) copper had slipped by 1.10% to $ 5,739.50 a ton by 0519 GMT, erasing small gains from the previous session and piercing support at the 100-day moving average ( DMA) around $5,749 a ton.

Shanghai Futures Exchange ( ShFE) copper slid by 1.60% to 46,260 yuan ($6,734) a ton. ShFE copper has broken below support on the monthly chart at the 100-DMA and hit the lowest since March 3 at 46,150 yuan a ton.

The LME updated its electronic platform LMEselect on Monday.

“All members were informed some time ago via off icial notices that resting orders would not be retained when the upgrade was rolled out,” the LME said in a statement.

“Trading has been normal today and no disruption was observed.”

BULLISH

New US single-family home sales jumped to a seven-month high in February, suggesting that the housing market’s recovery was gaining momentum despite higher prices and rising mortgage rates.

Indian mining company Vedanta Resources said on Friday it will invest $ 1 billion in its Zambian mining unit Konkola Copper Mines ( KCM), creating 7,000 jobs.

Hedge funds and money managers boosted their bullish position in copper futures and options by 2,231 lots to 54,680 in the week to March 21, US Commodity Futures Trading Commission data showed on Friday last week.

ShFE copper stocks saw a large 12,694 draw from warehouses in the latest week, bringing stocks down to around 312,500 tons, the lowest since the start of the month.

US stock futures and the dollar fell on Monday while Asian markets struggled as Mr. Trump’s failure on health care reform raised questions about his ability to push through tax cuts and fiscal spending to boost the economy.

LME zinc, lead, nickel and tin all fell around 1%-1.50%.

LME nickel extended selling from last week when the Philippines said it would allow miners who had been ordered shut on environmental concerns to export stockpiled material. —