Feb 2 (Reuters) – Copper ticked up on Wednesday as the dollar remained restrained after recently tumbling from a 19-month peak, but the absence of Chinese onshore traders due to the week-long Lunar New Year holiday kept Asian trading range-bound and volumes thin.
Benchmark copper on the London Metal Exchange CMCU3 was up 0.5% at $9,743 a tonne, as of 0348 GMT, after a 2% gain in the previous session.
The dollar’s pullback makes greenback-priced LME base metals cheaper for buyers with other currencies.
FUNDAMENTALS
* Chile’s constituent assembly approved on Tuesday an early stage proposal that could lead to the nationalization of the country’s copper industry, sparking an angry response from mining firms in the world’s top producer of the red metal.
* Rising geopolitical tensions surrounding Ukraine have fuelled market anxiety about metals supply, driving a market rally recently, as the United States has threatened to hit commodities powerhouse Russia with economic sanctions.
* Russian President Vladimir Putin accused the West on Tuesday of deliberately creating a scenario designed to lure it into war and ignoring Russia’s security concerns over Ukraine.
* For the top stories in metals and other news, click TOP/MTL or MET/L MARKETS NEWS
* Japanese shares rose, as an overnight Wall Street rally improved risk appetite. But despite losing 5.3% and 3.3% in January, respectively, the S&P 500 .SPX and the Dow .DJI have now recorded three straight days of gains, while the Nasdaq .IXIC posted four positive sessions in the last five. MKTS/GLOB
* The dollar struggled on Wednesday as Federal Reserve officials played down the chance of a half-point rate hike in March and a rally in global equity markets tarnished some of its safe-haven allure.
DATA/EVENTS (GMT)
1000 EU HICP Flash YY Jan
1000 EU HICP-X Flash YY Jan
PRICES Three month LME copper CMCU3
Most active ShFE copper SCFcv1
Three month LME aluminium CMAL3
Most active ShFE aluminium SAFcv1
Three month LME zinc CMZN3
Most active ShFE zinc SZNcv1
Three month LME lead CMPB3
Most active ShFE lead SPBcv1
Three month LME nickel CMNI3
Most active ShFE nickel SNIcv1
Three month LME tin CMSN3 Most active ShFE tin SSNcv1
(Reporting by Enrico Dela Cruz in Manila; Editing by Sherry Jacob-Phillips)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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