Copper drifts up with all eyes on US election, China meeting
Nov 5 (Reuters) -Copper prices edged higher on Tuesday, while traders awaited more stimulus cues from top consumer China as well as the outcome of the U.S. presidential election.
Three-month copper on the London Metal Exchange (LME) CMCU3 rose 0.2% to $9,718.5 per metric ton by 0225 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 increased 0.9% to 77,660 yuan ($10,929.56) a ton.
The U.S. dollar was on the back foot, making greenback-priced commodities more appealing to other currency holders. USD/
"Copper's short-term trend will depend on who wins the election and what details the Chinese officials disclose... A Trump presidency could pressure prices as it will exacerbate trade tensions with China," Marex consultant Edward Meir said.
The U.S. presidential election will take place on Tuesday, but the winner of the razor-thin race between Democrat Kamala Harris and Republican Donald Trump may not be known for days after the polls close.
Meanwhile, investors widely expect the Federal Reserve to cut rate by 25 basis points at the end of its two-day meeting on Thursday. FEDWATCH
This week's meeting of China's National People's Congress standing committee is also in focus as investors look for any further details on stimulus measures.
China's services activity expanded at the fastest pace in three months in October, helped by early signs that Beijing's big stimulus push was helping improve business conditions, a private-sector survey showed.
Chin's economic health is crucial for base metals because it is the largest consumer and heavily relies on these metals for its vast manufacturing sector.
LME aluminium CMAL3 inched up 0.2% to $2,625.5 a ton, nickel CMNI3 climbed 0.5% to $16,090, zinc CMZN3 gained 0.3% at $3,044.50, lead CMPB3 increased 0.2% to $2,036.50 and tin CMSN3 rose 0.2% to $32,220.
SHFE aluminium SAFcv1 added 1% at 20,980 yuan a ton, nickel SNIcv1 fell 0.4% to 124,320 yuan, zinc SZNcv1 lost 0.6% to 24,955 yuan, lead SPBcv1 decreased 0.1% to 16,780 yuan and tin SSNcv1 rose 0.4% to 262,600 yuan.
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Reporting by Ashitha Shivaprasad in Bengaluru; Editing by Rashmi Aich
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