Copper rises on US-China talks

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SINGAPORE- Copper prices rose amid “constructive” Sino-US talks and as China policymakers assured traders the economy is gradually recovering from the coronavirus crisis, though the fresh wave of COVID-19 cases assuaged hopes of a swift rebound.

Three-month copper on the London Metal Exchange rose 0.4 percent to $5,791.50 a ton, while the most-traded July copper contract on the Shanghai Futures Exchange SCFcv1 advanced 0.3 percent to 46,940 yuan ($6,638.19) a ton.

Lifting market sentiment was China central bank governor’s statement that economic fundamentals remain sound and the government will keep liquidity ample in the second half of this year.

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In what Beijing described as a “constructive” meeting, US Secretary of State Mike Pompeo met with China’s top diplomat Yang Jiechi amid a deep deterioration of ties between the strategic rivals, their first face-to-face meeting since last year. — Reuters

“This may temporary ease the escalating political tensions between the United States and China,” said analyst Helen Lau of Argonaut Securities.

However, prices were capped amid fears of wider contagion from a fresh outbreak in Beijing.

“There’s a balance of negative and positive news,” Lau said, adding copper’s price outlook is positive amid lingering supply risks in South America and demand prospects from the Chinese home appliances, cars and property sectors as well as the proposed $1 trillion infrastructure-focused US stimulus.

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