By Naveen Thukral
SINGAPORE, Feb 4 (Reuters) - London copper prices slid on Monday, easing for a second session amid pressure from concerns over slowing factory activity in the world’s biggest industrial metals consumer China.
Trading was dampened by the week-long Lunar New Year holiday which has closed markets in China.
Asia stocks hovered near four-month highs on Monday after a mixed performance on Wall Street at the close of last week, while the dollar firmed against the yen following strong U.S. employment and manufacturing data.
COPPER: Three-month copper on the London Metal Exchange fell 0.3 percent, to $6,119.50 a tonne by 0652 GMT.
FACTORY ACTIVITY: China’s factory activity shrank by the most in almost three years in January as new orders slumped further and output fell, a private survey showed, reinforcing fears that a slowdown in the world’s second-largest economy is deepening.
HOLIDAYS: “There’s a lack of trading activity because of Lunar New Year holidays in China,” said Helen Lau, analyst, Argonaut Securities. “China’s slowing manufacturing is weighing on metals markets.”
TRADE DEAL: Expectations of a trade deal between Washington and Beijing kept a floor under the market. U.S. President Donald Trump said he would meet China’s Xi Jinping soon to try to seal a comprehensive trade deal, citing substantial progress.
JOBS DATA: A U.S. Labor Department report on Friday showed nonfarm payrolls jumped by a stronger-than-forecast 304,000 jobs last month, the largest gain since February 2018. That report, along with better-than-expected ISM manufacturing activity numbers for January, pointed to underlying strength in the world’s biggest economy.
DEAL: Top copper miner Codelco said it had struck a contract deal with the union of supervisors at its Gabriela Mistral mine in northern Chile, averting the threat of a strike.
CME: The CME Group has reinstated approved status for warranting aluminium produced by United Company Rusal after U.S. sanctions were lifted against the company on Sunday.
Three month LME copper
Most active ShFE copper
Three month LME aluminium
Most active ShFE aluminium
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
Reporting by Naveen Thukral; Editing by Shreejay Sinha and Richard Pullin