October 25, 2017 / 10:06 AM / 3 years ago

METALS-Copper prices steady as stock market momentum stalls

    * Equities turn lower after run of record highs
    * GRAPHIC-2017 asset returns: tmsnrt.rs/2jvdmXl
    * LME/ShFE arb: bit.ly/2wZSAEz

 (Updates with closing prices)
    By Jan Harvey
    LONDON, Oct 25 (Reuters) - Copper steadied on Wednesday
after two days of gains as stock markets slid after a series of
record highs, pointing to a more cautious mood among investors.
But a retreat in the dollar lifted the broader metals complex.
    Copper hit a three-year high of $7,177 a tonne earlier in
October and moved back above $7,000 an ounce this week, but has
struggled to maintain momentum as confidence in the broader
economy lost steam. 
    "We had some very good economic data, equity markets at
record highs, (and) bond yields moving higher on the back of
Trump's proposed tax cuts, so the funds jumped in and used
copper to express a positive macro view," Societe Generale
analyst Robin Bhar said. "That took copper above fundamentally
justified levels."
    "It's going to continue to meet resistance around $7,000 and
above and get rebuffed, but there will be dip buying by other
specs and investors keeping it pretty stable," he added. 
    * LME COPPER: Three-month copper on the London Metal
Exchange         closed up 0.1 percent at $7,010 a tonne. The
metal moved up from an earlier low of $6,925 a tonne as the
dollar surrendered gains to turn lower. 
    * U.S. EQUITIES: Wall Street stocks fell after a barrage of
lacklustre earnings reports from companies, including AT&T and
Boeing, weighed. The Dow had closed at another record high on
    * COPPER DEFICIT: The copper market should see a deficit of
151,000 tonnes this year and a deficit of 104,000 tonnes in
2018, the International Copper Study Group (ICSG) said on
    * CHINA: A private coal mining industry investor in Shanxi
province is said to be the main actor behind a dramatic increase
in bullish bets in Chinese copper futures.             
    * TECHNICAL ANALYSIS: A break below $7,009 could cause a
loss into the range of $6,924-$6,944, according to Reuters
technical analyst Wang Tao.             
    * ZINC BACKWARDATION: The premium of cash zinc over the
three-month contract MZN0-3 rose to $68.50, climbing back
towards the 10-year high of $91 a tonne it hit two weeks ago.
That may indicate shortages in immediately available supply.
    * ZINC, LEAD PRICES: LME zinc         closed at $3,191 a
tonne, up 0.4 percent, while lead         ended the day 0.8
percent higher at $2,490 a tonne.
    * NICKEL DEMAND: Growing demand from battery-makers will
exacerbate "the predicted structural shortage of nickel between
now and 2025," research house Wood Mackenzie said.             
    * OTHER METALS: LME nickel         finished down 1.1 percent
at $11,865 a tonne, while aluminium         closed 1.4 percent
higher at $2,186 a tonne, just off an earlier one-month peak.
Tin         ended up 0.6 percent at $19,890 a tonne, off an
earlier 10-week low of $19,500 a tonne.               

 (Additional reporting by Melanie Burton in Melbourne, Tom Daly
in Beijing, editing by David Evans)
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