METALS-Copper rises as investors cheer Xi-Biden talks

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Nov 16 (Businesshala) – Copper prices rose on Tuesday as the dollar weakened and improved risk sentiment on positive developments from a meeting between US President Joe Biden and Chinese leader Xi Jinping.

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Three-month copper was up 0.7% to $9,742 a tonne and then down 0.6% to $9,616 a tonne by 0723 GMT on the London Metal Exchange.

The most-traded December copper contract on the Shanghai Futures Exchange closed 0.8% lower at 70,360 yuan ($11,031.50) a tonne, having risen as much as 0.4% in the prior session.

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The dollar eased broadly against riskier currencies in early trading hours ahead of a near 16-month peak against the euro ahead of US retail sales data, which could affect the outlook for interest rates.

The yuan rose to a five-month high as traders welcomed talks between US and Chinese presidents.

“We are seeing a return to risk appetite in the metals markets, driven by positive sentiment from the Virtual Presidential Summit and its impact on the two currencies,” said Anna Stablum, commodities broker at Marex Spectron.

“Concerns about Chinese asset markets are taking a step back for now,” Stablum said, referring to the liquidity crisis largely compared to the consumption of large amounts of metals, including copper.

In the virtual call, Xi called Biden an “old friend” and said both sides should increase communication and cooperation. But the two discussed China’s practices in Tibet, Hong Kong and Xinjiang, as well as other areas of friction.

fundamentals

* LME cash copper premium on three month contract MCU0-3 It fell to $32.50 a tonne, the lowest level since October 8, indicating a near-term supply crunch.

* ShFE nickel fell 2.1% to 143,500 yuan a tonne, zinc fell 2.4% to 22,635 yuan a tonne, aluminum fell 3.8% to 18,705 yuan a tonne, and lead declined 1.3% to 15,195 yuan a tonne.

* LME nickel rose 0.1% to $19,605 a tonne and zinc fell 0.6% to $3,196.50 a tonne.

* For top stories in metal and other news, click

$1 = 6.3781 Yuan Reporting by Mai Nguyen in Hanoi; Editing by Uttaresh.V and Rashmi Aichi

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