Gold Silver Reports → London copper and nickel surged on Monday, after China markets reopened following a week-long holiday and investors stocked up on the most heavily sold down metals.
Chinese shares started lower on Monday as trading resumed after the Lunar New Year break and investors caught up with wild swings in global markets, while Beijing took another swipe at devaluation talk with a strong fix for the local currency. But given metals are already at or below the cost of production and factories have low inventories as the seasonally strongest quarter for manufacturing gets ready to grind into gear, traders are betting prices can’t go much lower. Investors were also turning less bearish towards copper.
Hedge funds and money managers cut bearish bets in COMEX copper futures and options by around half in the week to Feb. 9, U.S. Commodity Futures Trading Commission data showed on Friday. JP Morgan elected to shut its short Dec 2016 LME nickel trade on Friday after prices slumped to the lowest in 13 years at $7,550 a tonne last week. It sees cash nickel trading at $8,000/t in the first quarter. The euro zone economy notched up modest growth in the final three months of last year, showing the bloc has little muscle to shrug off the globe’s mounting economic problems. → Neal Bhai Reports