Copper steadies as tariff reprieve lifts risk appetite
Copper prices in London were stable on Wednesday, supported by improved risk appetite across financial markets following US President Donald Trump's latest tariff respite, though a firm dollar kept gains in check.
Three-month copper on the London Metal Exchange held its ground at $9,593.5 per metric ton by 0214 GMT.
The most-traded copper contract on the Shanghai Futures Exchange (SHFE) edged 0.1% higher to 78,390 yuan ($10,886.29) per ton.
'Copper prices in the last two weeks have been trading in line with all sentiment in the global stock market. Trade optimism has lifted the US stock market and it has a kind of a spill over impact on copper prices as well,' said Kelvin Wong, a senior market analyst, Asia Pacific at OANDA.
Trump rolled back on Sunday his threat to impose 50% tariffs on imports from the EU next month, restoring a July 9 deadline to allow for talks. This boosted risk sentiment in the wider financial markets.
Data showed on Tuesday that US consumer confidence snapped five straight months of decline and improved in May amid a truce in the trade war between Washington and Beijing.
Copper rallies to one-month peak on signs of improving demand
Meanwhile, the dollar index added to overnight gains, making dollar-denominated assets more expensive to holders of other currencies.
The global refined copper market showed a 17,000 metric tons surplus in March, compared with a 180,000 metric tons surplus in February, the International Copper Study Group (ICSG) said in its latest monthly bulletin.
Among other London metals, aluminium eased 0.3% to $2,478.50 a ton, zinc edged 0.1% lower to $2,703, lead shed 0.3% to $1,979.5 and nickel weakened 0.3% to $15,370.
Tin was up 0.1% to $32,630. SHFE aluminium rose 0.5% to 20,165 yuan a ton, lead was down 0.2% at 16,765 yuan, nickel edged 0.4% lower to 121,870 yuan, while zinc was steady at 22,415 yuan and tin fell 0.3% to 264,440 yuan.
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