November 29, 2018 / 2:16 AM / 11 days ago

METALS-Base metal prices bounce in wake of Fed comments

    BEIJING, Nov 29 (Reuters) - Shanghai base metals rose on
Thursday, tracking equities higher after investors saw comments
from the U.S. Federal Reserve chair as a sign the central bank's
interest rate hike cycle is drawing to a close.
    Jerome Powell said at a lunch on Wednesday that the Fed's
policy rate is now "just below" estimates of a level that
neither brakes nor boosts a healthy U.S. economy. 
    Higher interest rates mean higher borrowing costs, which can
reduce economic activity and consumption, and see capital flow
into assets with higher yields than commodities.
            
    FUNDAMENTALS
    * SHFE COPPER: The most-traded January copper contract on
the Shanghai Futures Exchange had risen 1.3 percent to
49,610 yuan ($7,143.27) a tonne by 0156 GMT.
    * LME COPPER: Three-month copper on the London Metal
Exchange climbed 0.4 percent to $6,225 a tonne,
extending a 1.3 percent jump from the previous session, which
ended a three-day losing streak.   
    * OTHER METALS: Shanghai lead was the next biggest
gainer after copper, adding 1.2 percent, while zinc was
on course to snap a seven-day losing run, rising 0.9 percent.
    * VEDANTA: An Indian court-appointed panel said on Wednesday
that there were insufficient grounds to permanently close
Vedanta Ltd's copper smelter and a government
decision to shut it amounted to administrative overreach.

    * CHILE: BHP's Spence copper mine was operating normally
again following a union strike announced earlier on Wednesday,
the company said.
    * ALUMINIUM: The Russian government could buy up to 50,000
tonnes of aluminium for the state reserve, a government decree
showed on Wednesday, in a move that would support sanctioned
Russian aluminium producer Rusal.
    * For the top stories in metals and other news, click       
 or     
        
    MARKETS NEWS    
    * Asian stocks rose on Thursday tracking a Wall Street rally
after Powell's comments.    
        
    DATA AHEAD (GMT)
    0745  France    Consumer spending Oct
    0745  France    Detailed GDP Q3
    0855  Germany   Unemployment rate Nov
    1000  Euro zone Business climate Nov
    1300  Germany   Consumer prices Nov
    1330  U.S.      Personal income Oct
    1330  U.S.      Weekly jobless claims
    1500  U.S.     Pending homes sales Oct
    1900  U.S. Federal Reserve to release minutes from          
  Nov. 7-8 policy meeting    
        
    PRICES
 BASE METALS PRICES                       0151 GMT
 Three month LME copper                     6225.5
 Most active ShFE copper                     49640
 Three month LME aluminium                  1937.5
 Most active ShFE aluminium                  13685
 Three month LME zinc                       2456.5
 Most active ShFE zinc                       20270
 Three month LME lead                       1940.5
 Most active ShFE lead                       18260
 Three month LME nickel                      10845
 Most active ShFE nickel                     89690
 Three month LME tin                             0
 Most active ShFE tin                       143640
                                                  
 BASE METALS ARBITRAGE                            
 LME/SHFE COPPER             LMESHFCUc3    -566.03
 LME/SHFE ALUMINIUM          LMESHFALc3   -1881.96
 LME/SHFE ZINC               LMESHFZNc3     -140.3
 LME/SHFE LEAD               LMESHFPBc3     1610.7
 LME/SHFE NICKEL             LMESHFNIc3    1227.99
 

($1 = 6.9450 Chinese yuan renminbi)

    
 (Reporting by Tom Daly
Editing by Joseph Radford)
  
 
 
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