METALS-LME copper flat as global growth woes sap risk appetite

BY Reuters | ECONOMIC | 05/18/22 10:28 PM EDT

May 19 (Reuters) - London copper prices were flat on Thursday, as mounting worries over a global economic slowdown amid aggressive policy tightening by the U.S. Federal Reserve and ongoing lockdowns in China dented investors' risk appetite.

FUNDAMENTALS

* Benchmark three-month copper on the London Metal Exchange (LME) was steady at $9,236.50 a tonne, as of 0213 GMT, after dropping 1.4% in the previous session.

* The most-active June copper contract on the Shanghai Futures Exchange was down 0.5% at 71,380 yuan ($10,556.36) a tonne.

* China has policy room to cope with challenges, as the downward pressure on China's economy increases, state media quoted Premier Li Keqiang as saying on Wednesday.

* Permits for future U.S. homebuilding tumbled to a five-month low in April, suggesting the housing market was slowing as rising mortgage rates contribute to reduced affordability for entry-level and first-time buyers.

* Philadelphia Federal Reserve Bank President Patrick Harker on Wednesday said he expects the Fed to deliver two more half-point rate hikes before switching to quarter-point increments until the "scourge" of inflation is beaten back.

* U.S. Treasury Secretary Janet Yellen said that COVID-19 lockdowns in China appear to be impeding supply chain recovery and a broader slowdown in growth in the world's No. 2 economy could have global spillover effects.

* The global nickel market deficit deepened to 11,100 tonnes in March compared with a shortfall a month earlier of 1,800 tonnes, data from the International Nickel Study Group (INSG) showed on Wednesday.

* COLUMN-Nickel demand boomed in 2021; this year it will be supply: Andy Home.

* For the top stories in metals and other news, click or

MARKETS NEWS

* Asian stocks tracked a steep Wall Street selloff on Thursday, as investors fretted over rising global inflation, China's zero-COVID policy and the Ukraine war, while the safe-haven dollar held most of its strong overnight gains.

DATA/EVENTS (GMT)

1230 US Initial Jobless Clm Weekly

1230 US Philly Fed Business Indx May

1400 US Existing Home Sales April

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead

Three month LME nickel

Most active ShFE nickel

Three month LME tin

Most active ShFE tin ($1 = 6.7618 Chinese yuan renminbi) (Reporting by Brijesh Patel in Bengaluru; Editing by Rashmi Aich)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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