- LME lead at risk of long liquidation if it breaks 1800-Triland
- Two day Fed Reserve meeting begins on Tuesday
- Coming Up: U.S. Markit flash PMI July at 1345 GMT
(Adds comment, details, updates prices)
London copper was trapped near a one-week low on Tuesday as the appetite for risk among investors fell and volumes dwindled ahead of the U.S. Federal Reserve's policy meeting starting later in the session.
Caution gripped Asian markets on Tuesday, sending the safe-haven yen higher ahead of central bank meetings in the United States and Japan, while a fresh skid in oil dampened energy stocks on Wall Street. [MKTS/GLOB]
"Investors are likely to remain bearish going into the FOMC meeting this week as the USD strengthens and fundamentals remain weak," ANZ said in a note.
Three-month copper on the London Metal Exchange CMCU3 edged down by 0.1 percent to $4,895 a tonne by 0142 GMT, extending a mild 0.4 decline from the previous session when prices hit the lowest in a week at $4,875 a tonne.
Shanghai Futures Exchange copper SCFcv1 fell 1 percent to 37,810 yuan ($5,662) a tonne.
Grupo Mexico's April-June production of copper was up 22.7 percent at 266,071 tons from the same period of 2015, while its output of zinc jumped by 43 percent.
In other metals, LME nickel CMNI3 fell 1 percent, reversing Monday's gain as profits were taken on thin volumes. Nickel prices have soared by 10 percent so far this month on signs of tighter supply from the Philippines due to heavy rains and an environmental crackdown on miners.
Volumes of all contracts were low at around 1,500 lots across the complex.
In news, German business morale fell only slightly in July, a benchmark survey showed, suggesting Europe's largest economy has weathered the immediate storm from Britain's vote to leave the European Union.
The International Monetary Fund on Monday said it adopted a new methodology for calculating the currency amounts in the Special Drawing Rights (SDR) the fund uses for transactions, partly to ensure that China's yuan meets the IMF Board's intended weighting.
Borrowing costs and access to funding are the key obstacles to private investment in China, a senior official at the top economic planning agency said on Monday, after private investment growth shrank to a record low.
LME CMPB3 lead traded up 0.2 percent at $1,846 a tonne. Triland put $1,800 as the next support to watch and if that is broken there could be decent long liquidation.
PRICES
Three month LME copper CMCU3 Most active ShFE copper SCFcv1 Three month LME aluminium CMAL3 Most active ShFE aluminium SAFcv1 Three month LME zinc CMZN3 Most active ShFE zinc SZNcv1 Three month LME lead CMPB3 Most active ShFE lead SPBcv1 Three month LME nickel CMNI3 Most active ShFE nickel SNIcv1 Three month LME tin CMSN3 Most active ShFE tin SSNcv1 ($1 = 6.6783 Chinese yuan renminbi)($1 = 6.6780 Chinese yuan renminbi)
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- News: METALS-London copper near one-week low as Fed meet saps risk appetite