Most base metals fall on firmer dollar, risk-off sentiment
Updates prices
By Mai Nguyen
Nov 22 (Reuters) - Most basemetal prices traded lower on Friday, pressured by a stronger U.S. dollar and as investors were cautious about taking on riskdue to escalating tensions in the Russia-Ukraine war.
Three-month copper on the London Metal Exchange (LME) CMCU3 was down 0.3% at$8,984 per metric ton by 0712 GMT, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 fell 0.9% to 73,780 yuan ($10,178.66) a ton.
Recentescalations in the Russia-Ukraine war have rattled risk appetite across financial markets. A stronger dollar, which is setfor its eighth straight weekly gain, also madegreenback-priced metals more expensive for 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, and 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 investors expect favourable cryptocurrency policies from U.S. President-elect DonaldTrump's administration.
Meanwhile, physicalcopper demand has so far risen slightly duringChina's traditionally strong consumption season, which spans from November to December,with SHFE inventories declining modestly.
SHFE copper stocks CU-STX-SGH were last at 130,465 tons, the lowest since Feb. 8.
On Friday,LME aluminium CMAL3 fell 0.5% to $2,618, while nickel CMNI3 edged 0.1% higher at $15,725, zinc CMZN3 eased 0.1% to $2,988, lead CMPB3 increased 0.6% to $2,010 and tin CMSN3 was up 0.1% at $28,780.
SHFE aluminium SAFcv1 fell nearly 1.4% to 20,420 yuan a ton, nickel SNIcv1 dropped 1.7% to 125,090 yuan, lead SPBcv1 was flat at 16,975 yuan, tin SSNcv1 was down 1.1% at 240,800 yuan and zinc SZNcv1 eased 0.1% to 25,170 yuan.
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Reporting by Mai Nguyen in Hanoi; Editing by Sherry Jacob-Phillips, Janane Venkatraman and Sonia Cheema
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