Metals post biggest weekly fall in a year as Sino-US trade rift widens


by   |  VIEW 439
Metals post biggest weekly fall in a year as Sino-US trade rift widens

On Friday, the 2nd of August 2019, a basket of industry grade metals posted a weekly decline over contracting manufacturing activity, while Trump’s latest tariff hike on Chinese exports had triggered questions whether latest Trump move would push global economy towards a withering recession risk much-earlier than slated.

Meanwhile, widely used industry-grade metal, copper had dwindled to a fresh one-year low on Friday (August 2nd) over rekindled worries of global scale slowdown, as an escalated Sino-US trade tension began to jitter again following Trump’s latest tariff hike, which would likely to be answered with a harsh retaliation, as China’s newly appointed envoy to United States, Zheng, had stated earlier on Friday (August 2nd).

In point of fact, Trump’s announcement of a China tariff hike came barking out of the woods without any prior clues and sent shockwaves through global money markets, dragging equities’, currencies’ and commodities’ downwards over heightening slowdown concerns, while crude oil was witnessed its biggest intra-day plunge in several years and zinc tumbled to its lowest level in eleven months.

As a tumultuous outlook of Sino-US trade war alongside slanderous factory activity in China alongside Europe and United States had been casting further shadows to industry-grade metal outlooks, Benchmark copper price in London Commodities’ exchange wrapped up Friday’s (August 2nd) market 2.9 percent to $5,729.50 a ton after hitting a January low of $5,725 per ton earlier during midday trading hours.

While copper shed about 4 percent this week, remarking its largest weekly plunge in twelve months, Nickel nudged 1 percent lower to $14,450 per ton and lead lost 1.9 percent to $1,952 per ton. Aside from that, tin shrugged off 2 percent to $16,975 per ton and aluminum rounded off Friday’s (August 2nd) market 0.6 percent lower to $1,770 a ton, while casting further shadows on to industry-grade metal futures’ price outlook, an ING analyst, Warren Patterson said, “There was quite a bit of optimism around the trade talks earlier in the week and about the Fed. Both have disappointed. ”