METALS-Copper rises as investors cheer Xi-Biden talks

(Updates prices, adds details)

Nov 16 (Reuters) – Copper prices rose on Tuesday, as the dollar weakened and risk sentiment improved on positive developments from a meeting between U.S. President Joe Biden and Chinese leader Xi Jinping.

Three-month copper on the London Metal Exchange rose as much as 0.7% to $9,742 a tonne before easing to trade down 0.6% at $9,616 a tonne by 0723 GMT.

The most-traded December copper contract on the Shanghai Futures Exchange closed down 0.8% to 70,360 yuan ($11,031.50) a tonne, having risen as much as 0.4% earlier in the session.

The dollar eased broadly against riskier currencies in early trading hours before recovering slightly to hold near a 16-month peak against the euro ahead of U.S. retail sales data that could influence the outlook for interest rates.

The yuan scaled a five-month high as traders welcomed a dialogue between the U.S. and Chinese presidents.

“We are seeing risk appetite come back into metals markets, driven by positive sentiment from the virtual presidential summit and its impact on the two currencies,” said commodities broker Anna Stablum of Marex Spectron.

“Concerns about the Chinese property markets are taking a step back for now,” Stablum said, referring to a liquidity crisis in the massive sector than consumes a vast amount of metals including copper.

In a virtual call , Xi called Biden an “old friend” and said the two sides must increase communication and cooperation. But the two went on to discuss China’s practices in Tibet, Hong Kong and Xinjiang, among other areas of friction.

FUNDAMENTALS

* The premium of LME cash copper over the three-month contract MCU0-3 fell to $32.50 a tonne, the lowest level since Oct. 8, indicating that the tightness in nearby supplies has eased.

* ShFE nickel fell 2.1% to 143,500 yuan a tonne, zinc declined 2.4% to 22,635 yuan a tonne, aluminium shed 3.8% to 18,705 yuan a tonne and lead decreased 1.3% to 15,195 yuan a tonne.

* LME nickel rose 0.1% to $19,605 a tonne and zinc dipped 0.6% to $3,196.50 a tonne.

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