LIVE FUTURES REPORT 10/07: China liquidity boost inspires LME base metals rally

The posting of 1.81 trillion yuan in new Chinese loans early in the European trading session on Friday July 10 led to a rally across all London Metal Exchange three-month base metals prices.

LME base metals futures moved higher as fund positioning became less bearish, with bids moving into firmly bullish territory, and all metals, apart from tin, ended the day up compared with Thursday's close. “You can see that LME speculators have reduced their bearish bets,” Fastmarkets research analyst Andy Farida said. “The longer-term outlook should see demand for the base metals complex as a whole improving. Growth-supporting policies and monetary easing programs from various key developed and developing economies are heavily focused on metals-intensive infrastructure projects. Metal bulls should feel comfortable...

Published

Amy Hinton

July 10, 2020

18:51 GMT

London