Shanghai copper falls

28 Nov, 2017

Shanghai Futures Exchange copper fell 0.4 percent to 53,900 yuan ($8,170) on Monday as investors cut their exposure to risky assets as Beijing steps up a crackdown on shadow banking and other riskier forms of financing. China will check local governments' investment in railway projects, the state planner said on Friday, amid official concerns that breakneck infrastructure spending is racking up too much debt.
"Today's selling is also a likely reaction to the US PMI numbers which fell short on expectations, the Asian stock markets all losing a little ground and the fact that it appears some funds/houses will start shutting their books down by the end of this month," said Kingdom Futures in a report. "The year end could become even more volatile as liquidity further reduces we (may) not see the true direction of the market until after the Chinese New Year in mid February."
China's industrial firms weathered a broad government crackdown on financial risks as profits continued to surge last month in a stabilising force for the world's second-biggest economy, which has started to cool slightly in recent months.
Unionized workers at BHP Billiton Plc's Escondida copper mine in Chile, the world's largest, ended a 24-hour strike on Friday but could put down their tools again next week over the company's planned layoffs, the union said. Workers for the two largest unions at Southern Copper Corp in Peru said on Wednesday they had started an indefinite strike, demanding a fair share of mining profits, while the company said the stoppage had not affected operations.
Indonesia's Ministry of State-Owned Enterprises, tipped to oversee an acquisition of a majority stake in the local unit of Freeport-McMoRan Inc, has "no clear structure" yet for the deal, a ministry official said on Friday.

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