2 Aug 2018
Base metals noted sharp slide on Wednesday led by 3.1% slide in LME Nickel prices and 2.7% decline in LME Zinc prices. In other metals, Copper dropped 2% while Aluminium and Lead ended 1.4% and 1.3% lower respectively.
Prices came under pressure tracking escalating trade war worries between US – China along with demand worries from China and modest gains in US Dollar.
Sentiments soured amid escalating trade war worries between US-China after the Trump administration, in a bid to force Chinese officials to negotiating table, have threated to impose higher 25% tariff on Chinese imports worth $200 bn as against prior proposal of 10%. China on its part has warned the US against such "blackmailing and pressuring".
Meanwhile US Dollar rose after US Fed maintained optimism over US economic health and also stood by its stance of next rate hike in September.
On data front, China’s Caixin Mfg PMI eased to 50.8 from June’s 51 and market expectation of 50.9.