MORNING VIEW: Base metals prices consolidate as concerns over Covid-19 second waves weigh on market sentiment

Uncertainty about how the lifting of lockdowns will pan out, with some clusters of Covid-19 infections being seen in countries where lockdowns have been lifted, is unsettling markets this morning, Wednesday May 13.

As such, base metals prices along with equity markets have started to pull-back, or at least their rebounds are on hold. Business loans for long-term investments drop by 15% in Europe in the first quarter, while loans for working capital jump by 26%. Asian-Pacific and pre-market major western equity indices were mainly weaker this morning, with Germany’s Dax futures indicated to be down by 1.4% Given the Covid-19 pandemic, the last thing the global economy needs is a flare-up in United States-China trade tension. Base metals Three-month base metals prices on the London Metal Exchange were down across the board this morning by an average of 0.3%, with the pullbacks ranged from 0.1% for nickel ($12,275 per tonne) and 0.5% for lead ($16,23 per tonne). Copper...

Published

William Adams

May 13, 2020

08:26 GMT

London