London base metals were mixed in early trade on Tuesday amid concerns that an escalating U.S.-China trade tension could hurt the global economy, but copper and nickel on the Shanghai Futures Exchange rebounded from the previous session’s slump.
U.S. President Donald Trump said he would impose additional tariffs on Chinese goods slated to go into effect on Friday, as China, according to U.S. trade officials, backtracked on substantial commitments it had made during the trade negotiations.
Beijing is sending a delegation to Washington this week, led by Chinese Vice Premier Liu He, to try to reach a trade deal with the United States ahead of the tariffs imposition, U.S. Trade Representative Robert Lighthizer said on Monday.
FUNDAMENTALS
* Three-month copper on the London Metal Exchange was up 0.8 percent at $6,283 a tonne, as of 0201 GMT.
* The most-traded ShFE copper contract rose 1.1 percent to 48,370 yuan ($7,145.18) a tonne, after hitting its lowest in more than three months on Monday.
* Three-month LME nickel fell 0.4 percent to $12,130 a tonne, while ShFE nickel, which also hit a more than three-month low on Monday, was up 0.8 percent at $96,480 yuan a tonne.
* CHINA STIMULUS: China’s central bank said on Monday it will cut reserve requirement ratios to release about 280 billion yuan ($41 billion) for some small- and medium-sized banks, in a targeted move to help companies struggling amid an economic slowdown.
* LME ASIA WEEK: Hong Kong Exchanges and Clearing Ltd Chief Executive Charles Li said on Tuesday the bourse was in official talks about setting up warehouses in mainland China.
* LME ASIA WEEK: The Hong Kong Futures Exchange plans to launch dollar-denominated mini contracts for six base metals in the coming months, the head of market development at the London Metal Exchange said on Monday.
