SINGAPORE- London copper prices posted its first weekly loss in 11 weeks on Friday on escalating tensions between the United States and China, the world’s two biggest economies.
Three-month copper on the London Metal Exchange was down 2.5 percent to $6,380.50 per ton, down 1 percent on a weekly basis, while the September copper contract on the Shanghai Futures Exchange ended down 1 percent to 51,220 yuan ($7,298.48) a ton.
China ordered the United States to close its consulate in the city of Chengdu in response to being told to shut its consulate in Houston this week.
Meanwhile, US Secretary of State Mike Pompeo called for “more creative and assertive ways” to press the Chinese Communist Party to change its ways.
“The markets are back under pressure. The reason … is the heightened tension between China and the United States,” said Malcolm Freeman, a director at UK broker Kingdom Futures.
“Given any opportunity, there does seem to be a faction that wants to get the copper market down by triggering technical sells … however, there are a great number of trade customers looking for a dip to start buying.”