December 14, 2017 / 6:27 AM / 2 years ago

METALS- London metals mixed, China data supports

 (Updates prices)
    By Melanie Burton
    MELBOURNE, Dec 14 (Reuters) - London metals turned mixed
late in Asia on Thursday as a China rate rise took the shine off
cheerier manufacturing reports from the country and Japan, with
markets winding down ahead of the Christmas break.         
    China's central bank on Thursday nudged up money market
rates as authorities sought to defuse financial risks without
imperilling the economy, a balancing act that it has managed
successfully so far this year as activity remained broadly
steady.
    The move came after the U.S. raised rates and after a number
of improving manufacturing readings out of China and Japan. 
    "It all continues to paint a relatively positive picture --
at least not as bearish as the market is concerned about," said
analyst Daniel Hynes of ANZ in Sydney.
    "Coming into year-end, there has definitely been a bit of
profit-taking and no-one's really willing to put fresh longs on
the table at the minute."
    
    FUNDAMENTALS
    * COPPER: London Metal Exchange copper cut gains,
easing slightly to $6,720 a tonne by 0808 GMT, after gaining 1
percent in the previous session. It earlier hit the highest
since Dec. 5 at $6,765 a tonne. Copper's chart picture has
improved, having closed above the 100-day moving average at
$6,690 which is now support. 
    * SHFE: Shanghai Futures Exchange copper cut gains
to 0.2 percent at 52,290 yuan  ($7,910) a tonne.
    * NICKEL: LME nickel erased a near 2 percent gain,
while zinc was flat, and lead slipped 0.6 percent paring back
recent strength.
    * CHINA ECONOMY: China's fixed-asset investment growth
slowed to 7.2 percent in the January-November period, while
industrial output expanded at a faster pace than markets had
expected.
    * USD: The dollar fell after the Fed did not raise its rate
hike projections to four next year, despite signals of healthy
economic growth, and instead flagged inflation concerns.
    * ALUMINIUM: China's primary aluminium production fell for a
fifth consecutive month in November, official data showed on
Thursday, as the country's winter restrictions on smelters
pushed output to its lowest since February 2015.
    * JAPAN MANUFACTURING: Japanese manufacturing activity
expanded at the fastest pace in almost four years in December.

    * TIN: Shfe tin fell by 0.7 percent extending this
week's fall to nearly 4 percent, as open interest has surged
towards 30,000 lots, a record high, suggesting a large short
position has been opened. 
        
    MARKETS NEWS    
    * Asian stocks edged higher on Thursday after the Federal
Reserve delivered a much-anticipated interest rate hike but
flagged caution about inflation, tempering expectations for
future tightening, which weighed on the dollar and Treasury
yields.    
        
    DATA/EVENTS    
    Coming Up: Euro zone Markit Mfg PMI flash Nov at 0900 GMT   
 
 BASE METALS PRICES                  0707 GMT             
 Three month LME copper                             6717.5
 Most active ShFE copper                             52290
 Three month LME aluminium                            2023
 Most active ShFE aluminium                          14270
 Three month LME zinc                                 3150
 Most active ShFE zinc                               25105
 Three month LME lead                                 2509
 Most active ShFE lead                               19050
 Three month LME nickel                              11090
 Most active ShFE nickel                             89210
 Three month LME tin                                 18975
 Most active ShFE tin                               134490
                                                          
 BASE METALS ARBITRAGE                                    
 LME/SHFE COPPER             LMESHFCUc3             467.13
 LME/SHFE ALUMINIUM          LMESHFALc3           -1253.62
 LME/SHFE ZINC               LMESHFZNc3             414.18
 LME/SHFE LEAD               LMESHFPBc3           -1040.99
 LME/SHFE NICKEL             LMESHFNIc3             2744.3
 
($1 = 6.6105 Chinese yuan)

    
 (Reporting by Melanie Burton; Editing by Amrutha Gayathri)
  
 
 
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