March 28 (Reuters) - Copper extended gains in Asian
trading hours on Tuesday as a deal to buy the assets of stricken
U.S. lender Silicon Valley Bank (SVB) spurred risk appetite,
while a weaker dollar also lent support to the metal, which is
priced in the U.S. currency.
The overall mood, however, remained subdued amid worries
about a credit crunch that could curb economic growth and metals
demand.
Three-month copper on the London Metal Exchange was
up 0.6% at $9,018 a tonne, as of 0255 GMT, following a 0.5% gain
in the previous sesssion.
The most-traded May copper on the Shanghai Futures Exchange rose 0.7% to 69,650 yuan ($10,134.89) a tonne.
"Copper mirrored gains across the commodities amid the
improved risk appetite, but the gains were limited by lacklustre
demand in China," ANZ commodities strategists said in a note.
Regional U.S. lender First Citizens BancShares scooped up
the assets of SVB on Monday, triggering a relief rally in
financial markets worried about the banking sector turmoil. Downstream copper demand in top metals consumer China,
meanwhile, dropped slightly last week due to "overseas macro
factors" and rising prices, Huatai Futures analysts said in a
note.
The U.S. dollar slid for a second day against major
peers on Tuesday as receding fears of a full-blown banking
crisis sapped demand for the safest assets.
In other metals, LME aluminium edged up 0.3% to
$2,366 a tonne, zinc was little changed at $2,911.50,
while nickel gained 0.1% to $23,875. Lead steadied at $2,133, but tin dipped 0.4% to $25,315.
In Shanghai, aluminium rose 1.1% to 18,670 yuan a
tonne, zinc climbed 0.7% to 22,670 yuan, nickel advanced 0.6% to 182,450 yuan, lead edged up
0.1% to 15,425 yuan, and tin gained 1.6% to 203,670 yuan.
For the top stories in metals and other news, click or ($1 = 6.8723 yuan)
(Reporting by Enrico Dela Cruz in Manila; Editing by Janane
Venkatraman)
LME price overview COMEX copper futures All metals news All commodities news Foreign exchange rates SPEED GUIDES ))
