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METALS-London copper sours after U.S. strikes on Syria
April 7, 2017 / 5:52 AM / 7 months ago

METALS-London copper sours after U.S. strikes on Syria

 (Adds detail, comment and updates prices)
    By Jim Regan (Australia) and Melanie Burton
    SYDNEY, April 7 (Reuters) - London copper prices soured on
Friday as European markets woke up to the news of a U.S. air
strike on Syria, fuelling a wave of derisking in assets across
the board.
    Bonds, gold and the yen jumped in Asia, while stocks
retreated, as investors fled to safe assets after the United
States launched cruise missiles against an airbase in Syria,
raising the risk of confrontation with Russia and Iran.

    Geopolitical concerns related to Syria will dominate markets
over the next few days, with gold likely to climb and base
metals easing if tension escalates, said analyst Daniel Morgan
of UBS in Sydney.
    "If there is a de-escalation, then we may see the market
focus back on fundamentals next week. I expect the stocks for
copper, nickel and zinc to start to draw down over the coming
quarter."
    
    * LME COPPER: Three-month copper on the London Metal
Exchange fell by 0.7 percent to $5,816.50 a tonne by
0702 GMT, adding to losses from the previous session. Prices
dangled near key support at then 100-day moving average of 5796,
a break of which could fuel technical momentum-based selling. 
    * SHFE COPPER: Shanghai Futures Exchange copper
fell 1.7 pct to 47,130 yuan ($6,835) a tonne.
    * SHFE ZINC, NICKEL: Shanghai zinc fell 3.8 percent,
ShFE nickel dropped 2.8 percent alongside a downdraft
in steel as speculators cut bets, worried about rising steel
supply and tepid demand.
    * LME LEAD: London Metal Exchange lead slid 3
percent, pressured by falls in zinc, as well as chart-based
selling after prices cracked the 100-day moving average. 
    * MISSILE STRIKE: U.S President Donald Trump said he ordered
missile strikes against a Syrian airfield from which a deadly
chemical weapons attack was launched, declaring he acted in
America's "national security interest" against Syrian President
Bashar al-Assad.
    * GERMANY ECONOMY: German industrial output surged in
February and the trade balance swelled as the engine room of
Europe's largest economy fired on all cylinders to satisfy
demand at home and abroad, assuaging angst about rising
protectionism.
    * JINDAL SUSPENSION: India's Jindal Steel and Power
 suspended operations at its coking coal mine in
Australia last month due to heavy rains caused by Cyclone
Debbie, forcing it to declare force majeure.
    * CHINA TRADE: China will release trade data for March next
week, which traders said is expected to show an increase in
semi-manufactured aluminium exports, while China's copper
imports have been constrained by tighTer financing environment.
    * Japan's Pan Pacific Copper plans to cut its
April-September output of refined copper by 19.9 percent from
the same period last year due to long maintenance at one of its
plants. 
    * COMING UP: Germany Industrial output for Feb
 BASE METALS PRICES                                   
 Three month LME copper                           5809
 Most active ShFE copper                         47120
 Three month LME aluminium                        1947
 Most active ShFE aluminium                         48
 Three month LME zinc                           2701.5
 Most active ShFE zinc                           22195
 Three month LME lead                             2243
 Most active ShFE lead                               5
 Three month LME nickel                           9995
 Most active ShFE nickel                            93
 Three month LME tin                             20205
 Most active ShFE tin                                1
                                                      
 BASE METALS ARBITRAGE                                
 LME/SHFE COPPER                LMESHFCUc3      603.59
 LME/SHFE ALUMINIUM             LMESHFALc3    -1551.51
 LME/SHFE ZINC                  LMESHFZNc3      161.98
 LME/SHFE LEAD                  LMESHFPBc3    -2122.16
 LME/SHFE NICKEL                LMESHFNIc3        2868
    

    
 (Reporting by James Regan; Editing by Joseph Radford and Sherry
Jacob-Phillips)
  
 
 

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