Markets reacted positively to indications from US President Donald Trump on Wednesday that a deal with China could soon be coming, signaling an easing of tensions in the 15-month trade war between the two sides.
“They want to make a deal very badly… It could happen sooner than you think,” Trump told reporters in New York.
But the renewed positivity in commodity markets was offset by a surge in the dollar overnight.
The dollar index, which gauges the strength of the US dollar against a basket of foreign currencies, touched a high of 99.03 on Wednesday, refreshing a two-year peaked reached on August 30.
The index was at 98.89 as at 10.30am Shanghai time, below the 99 mark but still up from 98.42 at roughly the same time on Wednesday.
Despite the firmer US currency, copper and nickel prices on the SHFE still managed to secure marginal gains this morning.
The red metal’s most-traded November contract stood at 47,160 yuan ($6,618) per tonne as at 10.30am Shanghai time, up by 160 yuan per tonne – or 0.3% – from Wednesday’s close of 47,000 yuan per tonne.
The rest of the complex, meanwhile, was little changed to weaker, with zinc leading on the downside.
Zinc’s most-traded November contract fell to 18,625 yuan per tonne as at 10.30am Shanghai time, down by 35 yuan per tonne – or 0.2% – from a close of 18,660 yuan per tonne on Wednesday.
Other highlights
- In US data on Wednesday, crude oil inventories rose by 2.4 million barrels in the week ended September 20, compared with 300,000-barrel decline that had been forecast.
- In data on Thursday, the US’ final gross domestic product reading and unemployment claims are of note.