November 7, 2018 / 5:31 AM / 7 days ago

METALS-London copper rebounds as Democrats win control of U.S. House

 (Adds analyst comment, updates prices)
    By Mai Nguyen
    SINGAPORE, Nov 7 (Reuters) - London copper rose on Wednesday
after a two-day slide as Democrats captured control of the U.S.
House of Representatives at the midterm elections, which could
weaken President Donald Trump's agenda.
    "One of the headwinds for base metals has been the dollar
being strong and that's partly the result of the extra stimulus
the Trump administration pumped into the economy and rising
interest rates," said Guy Wolf, global head of market analytics
at Marex Spectron.
    "If these results are perceived to weaken the ability of the
Trump administration ... it's fair to think there's scope for
the U.S. dollar to reverse some of the moves over the last
couple of years," Wolf said.
    
    * COPPER: Three-month copper on the London Metal Exchange
        edged up 0.5 percent to $6,189 a tonne, as of 0456 GMT,
and the most-traded copper contract on the Shanghai Futures
Exchange          eased 0.1 percent to 49,590 yuan ($7,157) a
tonne.
    * U.S. ELECTIONS: Democrats rode a wave of dissatisfaction
with President Donald Trump to win control of the U.S. House of
Representatives on Tuesday, giving them the opportunity to block
Trump's agenda and open his administration to intense scrutiny.
            
    * EQUITIES, DOLLAR: Wall Street stock futures and Asian
shares held earlier gains in choppy trade on Wednesday, while
the dollar seesawed versus the euro and yen in a volatile
session, after Democrats won control of the U.S. House of
Representatives.                   
    * FED MEETING: Investors were also waiting for the outcome
of this week's policy meeting by the U.S. Federal Reserve, with
some analysts not expecting another rate hike this month but
looking for clues on future policy tightening.
    * OTHER METALS: LME aluminium        , lead         and
nickel         all edged higher, while in Shanghai, lead
         and zinc          were weaker.
    * FUNDAMENTALS: Analysts have said copper prices have been
held back by the U.S.-China trade war despite supportive
fundamental factors. "If you look at the underlining physical
market, particularly in copper, it's pretty tight ... There's a
disconnect between the micro fundamentals and the macro
sentiment at the moment in base metals," Wolf at Marex Spectron
said.

    PRICES    
    Three month LME copper                  
    Most active ShFE copper                  
    Three month LME aluminium               
    Most active ShFE aluminium               
    Three month LME zinc                    
    Most active ShFE zinc                    
    Three month LME lead                    
    Most active ShFE lead                    
    Three month LME nickel                 
    Most active ShFE nickel                   
    Three month LME tin                     
    Most active ShFE tin                             
    
    ARBS
                
                
                
                
                

 ($1 = 6.9287 Chinese yuan)

    
 (Reporting by Mai Nguyen; Editing by Gopakumar Warrier)
  
 
 
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