METALS-Copper ends week up on dollar slump, China hopes; zinc surges

Fri May 19, 2017 4:24pm GMT
 

* LME/ShFE arb: tmsnrt.rs/2oQ5nm2

* China zinc premiums highest in nearly three years (Adds closing prices)

By Maytaal Angel

LONDON, May 19 (Reuters) - Copper rose on Friday and ended the week with a gain of more than 2 percent thanks to dollar weakness and receding worries over China's economy, while zinc surged more than 3 percent amid stock draws.

Stock markets in top metals consumer China ended the week higher, snapping a five-week losing streak as soothing regulatory comments and a central bank cash injection offset worries about growth.

The dollar was on track for its worst week since August, having given up almost all the gains made since Donald Trump was elected U.S. president last year.

"Doubts on the China (growth) front have been fading for the past week but increasing on the U.S. front and that's constraining the upside," said Nitesh Shah, commodity strategist at ETF Securities.

"I see metals treading water for the next few weeks, but thereafter they are likely to increase (assuming) this negative sentiment from the U.S. fades. In a year of political change in China things aren't going to be allowed to fall off a cliff."

  Continued...

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