METALS-London copper rises as Evergrande worries ease

  • 9/22/2021
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Sept 22 (Reuters) - London copper prices rose on Wednesday, as worries of defaults at property giant China Evergrande Group calmed after its main unit vowed to pay some bond interest due on Thursday. Risk sentiment was also supported by the People’s Bank of China injecting more liquidity into the market to replace certain expiring loans. Three-month copper on the London Metal Exchange rose 2.8% to $9,227.50 a tonne by 0203 GMT, reversing losses from the previous session when the contract went as low as $8,810 a tonne, its weakest since Aug. 19. The most-traded October copper contract on the Shanghai Futures Exchange fell 1% to 68,680 yuan ($10,610.39) a tonne, catching up with losses in London over the previous two sessions when the Chinese markets were closed for a public holiday. Evergrande unit Hengda Real Estate Group said it would make a bond interest payment on Sept. 23, offering a measure of relief to global markets roiled this week by a looming debt crisis at the embattled developer. The rout had also hit the demand outlook for construction metals including copper. Analysts downplayed the threat of Evergrande’s troubles becoming a “Lehman moment” and setting off a financial crisis. FUNDAMENTALS * LME nickel rose 2% to $19,210 a tonne, zinc advanced 2.5% to $3,053 a tonne and tin increased 1.9% to $34,450 a tonne. * ShFE aluminium rose 1.1% to 22,860 yuan a tonne, lead fell 2.5% to 14,300 yuan a tonne while tin climbed 2.7% to 266,870 yuan a tonne. * For the top stories in metals and other news, click or MARKETS NEWS * Stocks found support and U.S. futures lifted in relief on Wednesday after teetering developer China Evergrande said it would pay some bond interest due on Thursday, allaying fears of an imminent and messy collapse that had spooked investors. DATA/EVENTS (GMT) 1400 EU Consumer Confid. Flash Sept 1400 US Existing Home Sales Aug 1800 US Federal Open Market Committee announces its interest rates decision followed by statement -- Japan Bank of Japan holds Monetary Policy Meeting ($1 = 6.4729 yuan) (Reporting by Mai Nguyen in Hanoi; Editing by Devika Syamnath)

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