Commodity News
HeadLine : Shanghai base metals strengthened for the most part on weak dollar
Date : Sep 18 2020
Shanghai base metals cruised higher for the most part on Friday morning, and the LME complex also rose broadly, as uncertainty over the economic outlook weighed on US dollar index. Shanghai base metals closed mixed in overnight trading on Thursday. Copper added 0.87%, zinc rose 0.35% and lead climbed 0.67%, while aluminium edged down 0.03%, nickel shed 0.19% and tin fell 1.12%. Their counterparts on the LME were mostly lower on Thursday. Tin declined 1.1% to lead the losses, aluminium slid 0.67%, zinc weakened 0.53% and nickel slipped 0.76%, while copper inched up 0.04% and lead rose 0.5%. Overnight, oil prices turned positive, increasing about 2% as Organisation of Petroleum Exporting Countries (OPEC) and its allies said they would urge oil-producing countries to comply with output cuts, which gave some support to copper prices. US first-time fillings for jobless benefits fell to 860,000 in the week ended September 12, staying below one million for three weeks in a row, which also boosted copper futures. In addition, both US new home starts and Philly Fed Manufacturing Index declined. Uncertainty over the economic outlook weighed on US dollar index. US stocks that fell across the board, high weekly jobless claims and no more stimulus from the US Federal Reserve to support the coronavirus-hit economy weighed on zinc prices. The dollar weakened overnight as US weekly jobless claims and new home starts both fell short of expectations, which helped SHFE nickel reverse some earlier losses.

Source : SMM
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