London Metal Exchange three-month base metals prices trended lower at the close on Tuesday September 8 with concern over macro-economic headwinds inspiring a sell-off across the complex.
While macroeconomic developments - including promises of increased infrastructure spending and hopes of a trade deal between China and the United States - have supported recent price increases, some analysts believe that LME futures prices have now over-extended their gains since hitting fresh lows in March amid the Covid-19 pandemic."Macro tailwinds have supported price increases across the complex, but LME futures have since run out of steam. These tailwinds have become headwinds. We're trading in a more volatile period where a lot of positive news is priced in," Fastmarkets research analyst Andy Farida said on Tuesday."Prices may have over-extended too far from market fundamentals, so we're seeing a swift sell-off. But this is an...