Base metals rise as risk sentiment improves; Fed decision in focus

Base metals rise as risk sentiment improves; Fed decision in focus

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SINGAPORE — Most base metals rose on Wednesday amid improved risk appetite as crude oil and equities gained on partial easing of coronavirus restrictions, while eyes were on the outcome of the U.S. central bank’s meeting later in the day.

The Fed meeting’s results could help clarify how long the central bank intends to leave rates near zero and offer a glimpse of how its key officials feel the economy will evolve.

Three-month copper on the London Metal Exchange (LME) rose 0.1% to $5,230 a tonne by 0218 GMT, and the most-traded June copper contract on the Shanghai Futures Exchange (ShFE) advanced 0.8% to 42,630 yuan ($6,021.70) a tonne.

FUNDAMENTALS

* PRICES: LME aluminum rose 0.6% to $1,513 a tonne, nickel was almost flat at $12,295 a tonne, zinc climbed 0.7% to $1,943.50 a tonne and lead was up 0.2% to $1,647 a tonne.

* SHFE PRICES: Shanghai aluminum increased 1.2% to 12,615 yuan a tonne, nickel was up 0.5% to 101,000 yuan a tonne, zinc climbed 1.3% to 16,290 yuan a tonne while lead eased 0.7% to 13,740 yuan a tonne.

MINING: As South Africa and Peru move to lift lockdowns, mining workers are resisting returning to work without adequate protective gear and information about cases at sites.

* RESULTS: Jiangxi Copper Co,, China’s top copper producer, said first-quarter profits fell 78.4% year-on-year while Aluminum Corp of China Ltd, reported a slump of 93.1% in January-March net profit from the same time last year.

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DATA/EVENTS (GMT)

0900 EU Consumer Confid. Final April

1200 Germany CPI Prelim YY April

1200 Germany HICP Prelim YY April

1230 US GDP Advance Q1

1800 US Federal Open Market Committee announces its

decision on interest rates followed by a statement

1830 US Federal Reserve Chairman Jerome Powell holds

news conference on interest rate policy

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminum

Most active ShFE aluminum

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 = 7.0794 Chinese yuan) (Reporting by Mai Nguyen; editing by Uttaresh.V)

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