LIVE FUTURES REPORT 27/05: Negative US-China rhetoric caps LME base metals gains

Three-month prices for base metals on the London Metal Exchange, except aluminium, closed in negative territory after trading on Wednesday May 27, with futures prices capped by risk-off sentiment created by reignited tensions between the United States and China.

Tensions have flared between the two countries over China’s proposals for new security laws in Hong Kong, pointing to a further deterioration in the relationship between the two global powers. This, coupled with the effects of the Covid-19 pandemic, was expected to heap pressure on LME base metals futures by exacerbating the global economic uncertainties. US President Donald Trump’s announcement earlier on Wednesday that his country would react strongly to China’s proposed actions, which have precipitated protests in Hong Kong, have added to negative...

Published

Amy Hinton

May 27, 2020

18:08 GMT

London