The dollar regained some ground on Tuesday but was pinned near a five-week low as traders tiptoed back into riskier assets after UBS' state-backed takeover of Credit Suisse allayed some fears of a widespread, systemic banking crisis.
"The market risk appetite may decline and risk aversion continues," said Jinrui Futures in a note. Three-month copper on the London Metal Exchange was down 0.1% to $8,693 a tonne by 0737 GMT, while the most-traded May copper contract on the Shanghai Futures Exchange rose 0.8% to 67,530 yuan ($9,817.26) a tonne, tracking overnight gains in London. "The spot market showed a certain level of resilience after copper prices fell.. The enthusiasm for stocking was high, which provided support for copper prices," Jinrui said, adding that prices are still at risk of further correction. The LME cash copper contract was trading at a premium of $3.75 a tonne over the three-month contract , flipping from a discount zone that has lasted since Jan. 19, indicating tightening nearby supply. The front month SHFE copper contract has been trading at a premium over the three-month contract since March 13, also indicating tightening nearby supply, as demand for the metal in China improved. LME aluminium rose 0.2% to $2,278 a tonne, lead edged up 0.2% to $2,123 a tonne, zinc was down 0.5% at $2,872.50 a tonne and tin shed 0.4% to $22,650 a tonne. SHFE aluminium edged down 0.1% to 18,150 yuan a tonne, nickel dropped 2.5% to 173,510 yuan a tonne, zinc fell 0.5% to 22,450 yuan a tonne, lead rose 0.1% to 15,395 yuan a tonne and tin was almost unchanged at 184,890 yuan a tonne. For the top stories in metals and other news, click or ($1 = 6.8787 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Nivedita Bhattacharjee and Sonia Cheema)
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