London copper climbs from two-month lows
MELBOURNE — London copper climbed away from its lowest in nearly two months on Monday as the dollar dropped, although traders remained cautious about demand after the Lunar New Year holiday that starts this week.
Chinese demand for metals and supply constraints should be supportive in 2018, while recent price strength looks to be a function of global growth and demand, said Citi in a report.
“( However) while we expect housing-related metals demand to stay fairly robust, potential slowdown of power infrastructure and machinery spending appears worrisome,” it said.
London Metal Exchange copper rose 1.7% to $6,867 a ton by 0346 GMT, recouping losses from the previous session when it lost 1.3% to hit $ 6,733 a ton, the weakest since Dec. 14. Prices also crashed through the 100-day moving average, worsening copper’s chart picture.
Shanghai Futures Exchange (ShFE) copper cut losses to 0.30% at 51,660 yuan ($ 8,199) a ton, having hit its weakest since late September amid a rout in China’s share markets ahead of the Lunar New Year. Open interest is at the highest in nearly two years. ShFE will close from the evening of Feb. 14.
US President Donald Trump will roll out an infrastructure plan on Monday that already faces significant hurdles in Congress because it does not offer as much new federal funding as Democrats want or directly address how to pay for the effort.
A surprise surge in US wage growth has rocked global stock and bond markets in the past week, and inflation figures from three of the world’s biggest economies could dictate whether investors are in for another roller-coaster ride in the coming week.
China’s top steelmaking city of Tangshan said on Friday last week that it would extend restrictions on production beyond the end of the winter heating season on March 15.
Asian share markets were struggling to find their footing on Monday as investors fretted about the risks from looming US inflation data, although early gains on S& P futures offered a sliver of support. —