METALS-Copper gains as hopes for trade deal outweigh soft Chinese data

By Kitco News / May 15, 2019 / www.kitco.com / Article Link


* GRAPHIC-2019 asset returns: (Updates with closing prices)By Eric OnstadLONDON, May 15 (Reuters) - Copper extended its rebound onWednesday as hopes the United States and China would forge atrade deal overshadowed largely disappointing economic data fromtop metals consumer China.Aluminium, however, slipped after Chinese output gained,fanning fears of oversupply.U.S. President Donald Trump called the trade war with China"a little squabble" and said a deal would be finalised when the"time is right". "It looks as if the macro news out of the U.S. concerningthe trade talks seems to be trumping all of the more negativenews, including the Chinese data for April which was a reversalof the good data we had in March," said Robin Bhar, head ofmetals research at Societe Generale in London.China reported surprisingly weaker growth in retail salesand industrial output for April on Wednesday, adding pressure onBeijing to roll out more stimulus. "The silver lining is that as the China data remains weakthe government will have to respond with interest rate cuts andmore fiscal stimulus, so that suggests that the second half ofthe year could be a lot better in terms of Chinese growth," Bharsaid.


Three-month copper on the London Metal Exchange climbed 1% to $6,085 a tonne in closing open outcry tradingafter hitting a 3-1/2 month low on Monday.
* ALUMINIUM: Benchmark LME aluminium ended up 0.5%at $1,855 a tonne, recovering from earlier losses after Chinareported output of aluminium for April rose 3.9% from the sametime last year to 2.92 million tonnes. "Overproduction will be the trend going forward and willhave a negative impact on aluminium prices. The economy isslowing down, demand is not strong," said analyst Helen Lau ofArgonaut Securities in Hong Kong.
* TIN STOCKS: LME tin rose 0.3% to finish at $19,845a tonne, bouncing back from the red after LME inventories jumped 23% in one day.


* NICKEL: LME nickel , untraded in closing rings,climbed 2.1 percent $12,150 a tonne in electronic trading by1600 GMT, helped by chart-based signals. "This morning themarket has breached the down trend from $13,160 high on 17thApril although likely to find resistance into $12,070 high from10th May," Alastair Munro at broker Marex Spectron said in anote.


* GERMAN ECONOMY: Sentiment was helped after data showedEurope's biggest economy Germany returned to growth in the firstquarter as householders spent more freely and constructionactivity picked up.
* ZINC OUTLOOK: Ross Strachan at Capital Economics said in anote that investor sentiment was expected to deterioratefurther. "In particular, zinc is vulnerable to further selling
as its net (long) position is almost at its 2018 average, unlikethe other base metals, which are far below, and it has the mostbearish supply prospects."


* PRICES: LME zinc rose 1.2% to close at $2,626 atonne while lead gained 0.6% to $1,813.50 a tonne.
* For the top stories in metals and other news, click or <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^Top Base and Precious Metals Analysis - GFMS ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Additional reporting by Mai Nguyen in SingaporeEditing by Louise Heavens/Mark Heinrich/Kirsten Donovan)

Reuters Messaging: eric.onstad.thomsonreuters.com@reuters.net))

LME price overview COMEX copper futures Base metals news All metals news All commodities news Foreign exchange rates SPEED GUIDES)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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