News

London copper climbs off two-month lows, eyes Lunar New Year

Date 2/12/2018 11:00:18 AM Source: Reuters

    MELBOURNE, Feb 12 (Reuters) - London copper climbed away from its lowest in nearly two months on Monday, as the dollar dropped and traders closed out positions ahead of the Lunar New Year holiday that starts this week. 

    FUNDAMENTALS

    * London Metal Exchange copper CMCU3 rose 1 percent to $6,821 a tonne by 0130 GMT, paring losses from the previous session when it lost 1.3 percent to hit $6,733 a tonne, the weakest since Dec. 14. Prices also crashed through the 100-day moving average, worsening copper's chart picture. 

    * Shanghai Futures Exchange copper SCFcv1 fell 0.9 percent to 51,350 yuan ($8,155) a tonne, having hit its weakest since late September amid a rout in China's sharemarkets ahead of the Lunar New Year which starts on Friday.

    * HOLIDAYS: The Shanghai Futures Exchange will close from the evening of Feb. 14, 2018.

    * DEMAND: U.S. 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.

    * U.S. ECONOMY: A surprise surge in U.S. 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 rollercoaster ride in the coming week.

    * POLLUTION: China's top steelmaking city of Tangshan said on Friday it would extend restrictions on production beyond the end of the winter heating season on March 15.

    * INVESTORS: Hedge funds and money managers cut their net long position in COMEX copper in the week to Feb. 6, U.S. Commodity Futures Trading Commission data showed on Friday.

    MARKETS NEWS    

    * Asian share markets were struggling to find their footing on Monday as investors fretted about the risks from looming U.S. inflation data, although early gains on S&P futures offered a sliver of support.