MANILA, May 9 (Reuters) - London copper edged higher on
Wednesday after sliding more than 1 percent in the previous
session, but gains were capped with investors cautious after the
United States pulled out of an international nuclear deal with
Iran.
U.S. President Donald Trump said he would reimpose U.S.
economic sanctions on Iran to undermine "a horrible one-sided
deal that should have never, ever been made".
Firm copper demand in top user China also spurred the price
of the metal higher, although a lack of supply disruptions
suggests the market is not as tight as many had expected, said
Helen Lau, analyst at Argonaut Securities in Hong Kong.
"There's no strong case for a big price recovery in copper
given better than expected supply, especially in South America,"
said Lau.
Three-month copper on the London Metal Exchange was
up 0.9 percent at $6,802.50 a tonne as of 0249 GMT.
SHANGHAI COPPER: The most-traded July copper contract on the
Shanghai Futures Exchange was off 0.7 percent at 51,030
yuan ($8,007) a tonne, tracking Tuesday's losses on the London
contract.
DOLLAR: The gains in London copper come even as the U.S.
dollar stayed near a four-month high versus a basket of major
currencies. The dollar's advance was briefly stalled
after Trump's Iran announcement.
CHILE OUTPUT: Copper output in Chile, the world's top
producer and exporter, rose 18.9 percent in the first quarter of
2018 from the same period a year earlier to 1.42 million tonnes.
U.S.-CHINA TALKS: Trump and Chinese President Xi Jinping
discussed ongoing trade issues, as both sides continue to
position themselves amid a heated feud over tariffs between the
world's two largest economies.
FEDERAL RESERVE: The Federal Reserve is entering new terrain
in its post-crisis planning: how to describe the conditions
under which it would try to slow the economy and to do so
without alarming financial markets.
ASIA GROWTH: The growth outlook for Asian economies remains
strong, but the region is vulnerable to sudden tightening in
global financial conditions, further market corrections and a
shift towards protectionist policies, the International Monetary
Fund said.
MARKETS: Crude oil prices jumped back to near 3-1/2-year
highs on Wednesday after Trump's move on Iran, sparking worries
about global oil supplies.
OTHER METALS: LME aluminium rose 0.6 percent to
$2,369 a tonne, zinc climbed 1.1 percent to $3,094.50
and lead advanced 0.8 percent to $2,307. In Shanghai,
aluminium eased 0.6 percent to 14,660 yuan a tonne and
nickel slipped 1 percent to 103,830 yuan.
