May 30, 2018 / 2:21 AM / 3 months ago

METALS-London copper hits 2-week low on stronger dollar, Italy crisis

    MANILA, May 30 (Reuters) - London copper fell to a two-week
low on Wednesday, pressured by a firmer dollar and as Italy's
deepening political crisis pulled investors out of risky assets.
    News that the United States will continue with imposing
tariffs on $50 billion of imports from China unless Beijing
addresses the issue of theft of U.S. intellectual property also
weighed on sentiment.
    Three-month copper on the London Metal Exchange was
down 0.7 percent at $6,810 a tonne by 0206 GMT, after hitting an
early low of $6,802.
    
    * SHANGHAI COPPER: The most-traded July copper contract on
the Shanghai Futures Exchange dropped nearly 1 percent
to 51,110 yuan ($7,952) a tonne, a one-week low.
    * EURO: The dollar hovered near a 10-month high versus the
euro as Italy's political crisis raised the likelihood of an
early election. A stronger greenback makes dollar-denominated
assets costlier for holders of other currencies.
    * CHINA RESPONSE: Chinese state media criticised a U.S.
announcement that it would press ahead with restrictions on
investment by Chinese companies, saying that Beijing was ready
to fight back if Washington was looking to reignite a trade war.

    * INDIA SMELTER: Vedanta Resources is working on a
legal challenge to an Indian state's closure of one of its
copper smelters, but it will not proceed until tensions over the
deaths of 13 people during protests last week have eased.

    * ALUMINIUM PREMIUMS: Two global aluminium producers have
offered Japanese buyers a premium of $159-160 per tonne for
primary metal shipments for the July-September quarter, up 23-24
percent from the current quarter, four sources directly involved
in pricing talks said.
    * TIN: Shanghai tin jumped more than 3 percent to
an intraday high of 157,560 yuan a tonne, its strongest level
since August. Traders have said the market was concerned that
shipments from China's top supplier Myanmar were falling. 
    * MARKETS: Asian shares extended a global selloff as Italy's
political crisis provoked a heavy retreat on Wall Street, sent
the euro to a 10-month low and pushed up borrowing costs for the
government in Rome.       
    DATA AHEAD (GMT)
    0600  Germany               Import prices              Apr 
    0600  Germany               Retail sales               Apr
    0645  France                Detailed GDP               Q1
    0645  France                Consumer spending          Apr
    0800  Germany               Unemployment rate          May
    0900  Euro zone             Business climate           May
    1200  Germany               Consumer prices            May
    1215  U.S.                  ADP national employment    May
    1230  U.S.                  GDP 2nd estimate           Q1
    1230  U.S.                  Goods trade balance        Apr
    1230  U.S.                  Wholesale inventories      Apr
    1800  Federal Reserve issues Beige Book on economic
          condition    
    
 BASE METALS PRICES                                 0206 GMT
 Three month LME copper                                 6810
 Most active ShFE copper                               51240
 Three month LME aluminium                            2266.5
 Most active ShFE aluminium                            14695
 Three month LME zinc                                   3075
 Most active ShFE zinc                                 24070
 Three month LME lead                                 2431.5
 Most active ShFE lead                                 19860
 Three month LME nickel                                14850
 Most active ShFE nickel                              112240
 Three month LME tin                                   20605
 Most active ShFE tin                                 155180
                                                            
 BASE METALS ARBITRAGE                                      
 LME/SHFE COPPER                  LMESHFCUc3           215.8
 LME/SHFE ALUMINIUM               LMESHFALc3        -2238.49
 LME/SHFE ZINC                    LMESHFZNc3          507.43
 LME/SHFE LEAD                    LMESHFPBc3          567.13
 LME/SHFE NICKEL                  LMESHFNIc3        -1469.02
 
($1 = 6.4275 Chinese yuan)

    
 (Reporting by Manolo Serapio Jr.
Editing by Joseph Radford)
  
 
 
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