Shanghai copper extends gains on US government reopening cheer

The bill has now been passed to President Donald Trump to be signed into law.

SEATTLE (Scrap Monster): Shanghai copper rose on Thursday as investors welcomed the likely end of the U.S. government shutdown, easing market uncertainty, though gains were capped by expectations of weak Chinese bank lending ahead of key economic data releases.

The most-traded copper contract on Shanghai Futures Exchange was up by 0.58% to trade at 87,230 yuan ($12,246.24) a metric ton, as of 0200 GMT.

The benchmark three-month copper eased 0.25% to $10,91.5 a ton after it hit $10,972 on Wednesday.

The market is closely watching steps taken to end the longest government shutdown in the history of the U.S., where the Republican-controlled House of Representatives on Wednesday passed a spending package to extend funding for federal agencies through January 30 that can reopen the government.

The bill has now been passed to President Donald Trump to be signed into law.

Investors welcome the looming reopening of the U.S. government, as it reduces market uncertainties, while they expect economic data to return to help them gauge the U.S. economy.

However, expectations for China's weak bank lending are holding back copper gains. Investors are also awaiting a slew of data on the Chinese economy to be released on Friday, including new home prices, retail sales, and industrial output.

Elsewhere, among SHFE base metals, tin posted the biggest gain, surging 2.25% to 298,070 yuan a ton.

Indonesia, a major tin supplier to China, exported 2,643 tons of refined tin in October, down 53.89% from a year earlier, data from the country's trade ministry showed on Monday, leading to concerns over the supply of the soldering metal.

Aluminium was up 0.87%, lead climbed 0.77%, nickel dipped 0.17%, and zinc was unchanged.

Among LME metals, aluminium and nickel dipped 0.19%, lead dropped 0.36%, zinc was little changed, while tin was unchanged.

Courtesy: www.tradingview.com