September 12, 2019 / 5:02 AM / 5 days ago

METALS-Copper jumps 1.3% on Trump's tariff delay; focus on ECB

 (Adds comment, details and updates prices)
    BEIJING, Sept 12 (Reuters) - London copper prices rose 1.3%
on Thursday after U.S. President Donald Trump agreed to a delay
in hiking tariffs on $250 billion worth of Chinese goods by two
weeks, while investors awaited news on a possible European
Central Bank (ECB) rate cut.
    The ECB will hold a meeting in Frankfurt on Thursday, where
it is set to unveil fresh stimulus measures to prop up the
ailing euro zone economy. Lower interest rates tend to push
commodity prices higher because they mean lower inventory
financing costs.
    Copper, considered a bellwether for economic health, dived
17.7% in London in 2018 and has shed another 2% so far this
year, weighed down by concerns the Sino-U.S. trade war will hurt
demand for industrial metals.
    The discount of cash LME copper over the three-month
contract CMCU0-3 was last assessed at $33.75 a tonne, the
biggest discount since May 22.
    "The large contangos at the front of the curve seem to
highlight how disappointing real demand is in the physical
market," Marex Spectron said in a note.
    
    FUNDAMENTALS
    * COPPER: Three-month copper on the London Metal Exchange
 rose as much as 1.3% to $5,848.50 a tonne and stood at
$5,844, as of 0431 GMT, having closed 0.9% lower on Wednesday.
The most traded November copper contract on the Shanghai Futures
Exchange ended the morning session up 0.2% at 47,300
yuan  ($6,676.36) a tonne, on course for a weekly dip of 0.5%.
    * LME: The LME complex was mixed, with nickel
climbing 1.2% and zinc adding 0.4%, while lead
slipped 0.1%, aluminium dipped 0.2% and tin shed 1.4%.
    * SHFE: The ShFE will be closed on Friday for China's
Mid-Autumn Festival, reopening on Monday. It will report weekly
stocks data later in the day.
    * HKEX: Hong Kong Exchanges and Clearing Ltd (HKEX)
, the owner of the LME, unveiled a $39 billion takeover
approach to the London Stock Exchange Plc  on Wednesday
that received a cool response from investors concerned about its
regulatory and financial hurdles.    
            
    MARKETS NEWS    
    * Asian stocks hit a six-week high on hopes for a thaw in
U.S.-China trade frictions and expectations that the European
Central Bank would kick off another wave of monetary easing by
global central banks.    
        
    DATA/EVENTS AHEAD
0600   Germany   HICP Final YY               Aug
0645   France    CPI (EU Norm) Final MM, YY  Aug
1145   EU        ECB Refinancing Rate        Sept
1145   EU        ECB Deposit Rate            Sept
1200   India     Industrial Output YY        July
1230   US        CPI MM, SA                  Aug
1230   US        Initial Jobless Claims      Weekly
1230   ECB President Mario Draghi holds a press conference after
interest rate meeting         
        
    PRICES    
                                           0437 GMT
 Three month LME copper                        5845
 Most active ShFE copper                      47300
 Three month LME aluminium                     1822
 Most active ShFE aluminium                   14415
 Three month LME zinc                        2371.5
 Most active ShFE zinc                        19220
 Three month LME lead                          2092
 Most active ShFE lead                        17370
 Three month LME nickel                       18055
 Most active ShFE nickel                     143820
 Three month LME tin                          17535
 Most active ShFE tin                        141440
                                                   
                                                   
 LME/SHFE COPPER               LMESHFCUc3    498.57
 LME/SHFE ALUMINIUM            LMESHFALc3   -199.48
                                           
 LME/SHFE ZINC                 LMESHFZNc3     17.82
 LME/SHFE LEAD                 LMESHFPBc3   -164.24
 LME/SHFE NICKEL               LMESHFNIc3  -3537.85
                                           
 

($1 = 7.0847 Chinese yuan)

 (Reporting by Tom Daly; Editing by Rashmi Aich and Sherry
Jacob-Phillips)
  
 
 
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