Prices are up by an average of 0.5%, with three-month copper
prices up 0.3% at $5,688 per tonne and lead prices up 1% at
$2,136 per tonne. Volume has been above average with 7,628 lots
traded as of 07:10 BST.
This morning’s gains come after a generally
stronger day on Friday when prices closed up an average of
0.4%, led by a 1.3% gain in tin prices, lead, zinc and nickel
closed up an average of 0.4%, while copper and aluminium were
Gold prices are off 0.2% this morning at $1,251.59 per oz as
the market consolidates, it closed Friday off 0.1% at $1,253.70
per oz. Silver prices are edging lower, while the other
precious metals are generally consolidating.
In Shanghai this morning, tin prices are off 0.6% on the
Shanghai Futures Exchange (SHFE), the others are up between
0.4% for nickel and 1.7% for aluminium, with copper prices up
0.4% at 45,740 yuan per tonne ($6,713 per tonne). Spot copper
prices in Changjiang are down 0.1% at 45,340-45,590 yuan per
tonne and the LME/Shanghai copper arb ratio is at 8.04.
In other metals in China, September iron ore prices on the
Dalian Commodity Exchange are up 1.7% at 437 yuan per tonne,
while on the SHFE, steel rebar prices continue to rebound, they
are up 2% while gold and silver prices are little changed.
In international markets, spot Brent crude oil prices are down
0.1% at $47.22 per barrel and the yield on the US ten-year
treasuries has edged lower to 2.15%.
Equities ended Friday slightly higher with the Euro Stoxx 50
closing up 0.1% and the Dow closed up 0.5%. In Asia this
morning, markets are firmer; the Nikkei is up 0.6%, the Hang
Seng is up 1.3%, the ASX200 is 0.5% higher, the CSI 300 is up
0.8% and the Kospi is up 0.4%.
The dollar index at 97.15 is consolidating its recent rebound,
so all eyes on whether the dollar has now put in a base. The
euro is at 1.1204 is consolidating, sterling is edging higher,
while the yen is weaker and the Australian dollar is firm at
The yuan at 6.8130 is looking weaker, most of the other
emerging market currencies we follow are flat, although the
Mexican peso is firm at 17.9110.
The economic agenda is light today, data out already shows UK
house prices dipping 0.4%, the first decline in six months and
Japan’s trade balance showed strong export growth
of 14.9% in May and stronger than expected imports –
both a sign of a healthy global market. Later today US Federal
Open Market Committee (FOMC) member William Dudley and German
Bundesbank president Jens Weidmann are speaking.
The slide in aluminium prices appears to have halted this
morning with prices rebounding off a support line that was
breached on Friday and copper prices are consolidating too. The
other metals look firmer with rebounds underway in lead, zinc
and nickel, while tin’s strong rebound, which
continued in early trading with a 1.2% gain at this
morning’s high, is now consolidating. With
aluminium prices possibly turning the corner and rebounding, it
may be that some general strength appears in the base metals,
but we wait to see how much follow through buying interest
there is. For now we expect sideways trading as the markets
look well supplied.
Precious metals prices are, for the most part, retreating as
markets consolidate as the need for haven assets has eased.
Until geopolitical, or political tensions rise again, gold
prices may remain on a back footing.
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