METALS-Copper eases as China data fails to calm investor nerves

SINGAPORE, Dec 3 (Reuters) – London copper prices slid on
Tuesday, with most industrial metals coming under pressure, as
manufacturing data from China failed to assuage lingering doubts
of an economic slowdown.

FUNDAMENTALS
* Three-month copper on the London Metal Exchange
was down 0.4% at $5,862 a tonne, as of 0125 GMT, and the
most-traded copper contract on the Shanghai Futures Exchange
gave up 0.3% to 47,100 yuan ($6,691.39) a tonne.
* China’s factory activity showed surprising signs of
improvement in November, with growth picking up to a near
three-year high, a private sector survey showed on Monday,
reinforcing upbeat government data released over the weekend.

* Analysts, however, remain concerned about deflationary
risks in the sector, unconvinced that the worst is over yet for
Chinese manufacturers. They say the sub-indexes of both surveys
painted a picture of patchy recovery that will be difficult to
sustain.
* Investors in commodity and financial markets are expecting
a U.S.-China trade deal to help drive economic growth.
* A senior adviser to U.S. President Donald Trump said on
Monday an agreement was still possible before the end of the
year, adding that the first phase of the deal was being put to
paper.
* Trump ambushed Brazil and Argentina on Monday, announcing
tariffs on U.S. steel and aluminum imports from the two
countries in a measure that shocked South American officials and
left them scrambling for answers.
* Trump’s tariff threat overshadowed encouraging data on
China and euro zone economies.
* Norsk Hydro , one of the world’s biggest aluminium
producers, plans to cut production by 20% at its majority-owned
Slovalco plant in Slovakia, citing a weakening market.
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* The weak aluminium market has led to rising inventories.
On-warrant LME stocks MALSTX-TOTAL, material not earmarked for
delivery, reached 1,114,650 tonnes, the highest since Feb. 22,
data showed.
* China’s Shanghai International Energy Exchange (INE) is
preparing to launch a copper futures contract within the next
year that will be open to domestic and foreign investors,
according to two sources familiar with the plans.
* For the top stories in metals and other news, click
or

MARKETS NEWS
* Asian shares skidded on Tuesday after U.S. President
Donald Trump stunned markets with tariffs against Brazil and
Argentina, recharging fears about global trade tensions, while
weak U.S. factory data added to the investor gloom.

DATA/EVENTS (GMT)
0030 Australia Current Account Balance Q3
0030 Australia Net Exports Contribution Q3
0330 Australia RBA Cash Rate Dec
1100 Brazil GDP YY, QQ Q3
PRICES
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
Three month LME zinc
Most active ShFE zinc
Three month LME lead
Most active ShFE lead
Three month LME nickel
Most active ShFE nickel
Three month LME tin
Most active ShFE tin

ARBS

($1 = 7.0389 Chinese yuan)

(Reporting by Naveen Thukral, Editing by Sherry Jacob-Phillips)

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