News

METALS-Shanghai metals fall on U.S.-N Korea tensions

Date 8/11/2017 10:57:50 AM Source: Thomson Reuters

SYDNEY, Aug 11 (Reuters) - Most Chinese base metals were

trading lower on Friday, pressured by uncertainty over

U.S.-North Korea tensions that was shifting investment into gold

and low-risk instruments.

    "Rising geopolitical tension was once again the dominant

theme in commodity markets," ANZ Bank said in a report.

    North Korea said it was completing plans to fire four

intermediate-range missiles over Japan to land near the U.S.

Pacific island territory of Guam.

    

    FUNDAMENTALS

    * LONDON COPPER: Three-month copper on the London Metal

Exchange slipped 0.5 percent to $6,390 a tonne by 0100

GMT, extending losses from the previous session.

    * SHANGHAI COPPER: The most-traded copper contract on the

Shanghai Futures Exchange dropped nearly 1.5 percent to

50,290 yuan ($7,566.96) a tonne shortly after the open.

    * LEAD DROPS: SHFE lead was also a big loser,

falling more than 1.6 percent. LME lead was flat, but

remained close to six-month highs hit earlier in the week on

shortfalls in pre-refined lead concentrate supply.

    * TRUMP: U.S. President Donald Trump ratcheted up his

rhetoric against North Korea and its leader on Thursday, warning

Pyongyang against attacking Guam or U.S. allies after it

disclosed plans to fire missiles over Japan to land near the

U.S. Pacific territory.

   * GOLD UP: Gold prices edged up to touch their highest in

over two months on Friday, set for a fourth consecutive day of

gains.

    * LOW RISK: Stock funds in the United States posted $2.8

billion in withdrawals during the seven days through Aug. 9,

marking the largest outflows in five weeks. Nearly $31 billion

moved into relatively low-risk money market funds, the strongest

figure since 2013. About $4 billion moved into taxable and

municipal bonds, according to the research service.

    * ELECTRIC CARS: Mining group Glencore  GLEN.L  raised

earnings guidance for its trading business, citing higher

commodity prices, and said on Thursday increased take-up of

electric vehicles and demand for energy storage would boost

demand for its products.

    * ALUMINIUM SUPPLIES: Worries about supplies from top

producer China have been reinforced by Shandong province, which

this week ordered the closure of 3.21 million tonnes of

aluminium capacity.

    * ENVIRONMENT: The shutdowns come as China's Ministry of

Environmental Protection (MEP) said it was embarking on its

fourth round of environmental inspections across eight provinces

and regions, including Shandong.

 

Edited by SHMET