LIVE FUTURES REPORT 29/08: Most LME base metals prices pressured by trade woes; ali climbs 1.7%

Base metal prices on the London Metal Exchange were largely lower at the close of trading on Wednesday August 29, pressured by investor uncertainty over US-Sino trade relations while positive second-quarter GDP growth indicated strength in the US economy.

Three-month copper, nickel, zinc and tin prices came under pressure from a short rally in the dollar after the United States and Mexico agreed new terms to the North American Free Trade Agreement (Nafta). While the talks prompted a short flurry of optimism in the market, the absence of a similar agreement with Canada could ignite further trade discord, after US President Donald Trump threatened duties on Canada if the countries fail to reach a trilateral agreement. In addition, the ongoing rift between the US and China continues to deter commodity investment, and despite both the dollar and yuan holding firm, investors remain cautious of a further round of tariffs set to take effect next week. Bucking the trend, three-month aluminium prices climbed 1.7% over the afternoon, while volumes...


Hassan Butt

August 29, 2018

17:57 GMT