Commodities

Copper slips on profit-taking, caution after recent trade deal rally

Reuters SINGAPORE | Updated on December 19, 2019 Published on December 19, 2019

Copper prices edged down on Thursday due to some profit-taking and caution by investors after a recent rally, boosted by an interim Sino-U.S. trade deal and hopes of improving demand in top consumer China.

Benchmark three-month copper on the London Metal Exchange (LME) fell 0.1% to $6,170 a tonne by 0248 GMT, having gained in eight out of the last 11 sessions. The contract hit its highest in seven months on Tuesday.

The most-traded copper contract on the Shanghai Futures Exchange (ShFE) dipped 0.2% to 49,020 yuan ($6,964.16) a tonne.

China's factory activity showed surprising signs of improvement in November, while the United States and China reached a preliminary agreement to resolve its 17-month-long trade war that hurt global economic growth and metals demand.

However, both outlooks for further trade negotiations and China's longer-term economic performance remained uncertain, capping further gains in copper prices.

Published on December 19, 2019
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