Most base metals fall on firmer dollar, risk-off sentiment
Nov 22 (Reuters) -Base metal prices mostly traded lower on Friday, pressured by a stronger dollar and risk-averse sentiment due to the escalating conflict in the Ukraine-Russia war.
Three-month copper on the London Metal Exchange (LME) CMCU3 eased 0.1% to $8,999 per metric ton by 0334 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 fell 0.9% to 73,800 yuan ($10,184.65) a ton.
Escalations in the Russia-Ukraine war rattled risk appetite across financial markets, while a stronger dollar - on track for the eighth straight weekly gain - made greenback-priced metals more expensive to holders of other currencies.
"I think the war is a wild card so risk-off pivot will hurt base metals. The higher dollar is putting pressure on base metals too," said a metals trader.
"There is still no good news from China on how they'll stimulate more, although they are on the right track. Bitcoin is taking away attention from commodities as well," the trader said.
Bitcoin came within a whisker of closing above $100,000 for the first time on Thursday as the election of Donald Trump as U.S. president spurred expectations that his administration will create a friendly regulatory environment for cryptocurrencies.
Physical copper demand showed a slight uptick during China's traditionally strong consumption season, as indicated by a modest decline in SHFE inventories.
SHFE copper stocks CU-STX-SGH were last at 130,465 tons, the lowest since Feb. 8.
LME aluminium CMAL3 fell 0.4% to $2,620.50, while nickel CMNI3 edged 0.1% higher to $15,725, zinc CMZN3 advanced 0.4% to $3,003, lead CMPB3 increased 0.5% to $2,009 and tin CMSN3 was up 0.8% at $28,980.
SHFE aluminium SAFcv1 fell nearly 1% to 20,520 yuan a ton, nickel SNIcv1 dropped 1.5% to 125,390 yuan, lead SPBcv1 declined 0.3% to 16,920 yuan, tin SSNcv1 was down 0.9% at 241,240 yuan while zinc SZNcv1 rose 0.2% to 25,245 yuan.
For the top stories in metals and other news, click
TOP/MTL or MET/L
($1 = 7.2462 yuan)
Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips
For related news and prices, click on the codes in brackets: LME price overview RING= COMEX copper futures 0#HG: All metals news MTL All commodities news C
Foreign exchange rates FX=SPEED GUIDES LME/INDEX
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
