March 29 (Reuters) – Copper edged down during Asian trading hours on Wednesday as investors remained cautious following weeks of volatility in financial markets due to turmoil in the banking sector, although fears of a full-blown crisis have eased.
Three-month copper on the London Metal Exchange CMCU3 was down 0.4% at $8,945 a tonne by 0327 GMT, after two straight sessions of modest gains.
The most-traded May copper on the Shanghai Futures Exchange SCFcv1 shed 0.2% to 69,280 yuan ($10,065.82) a tonne.
“Clearly, investors have not completely lost their anxiety in the wake of the recent bank failures in the U.S. and hints of a big regulatory overhaul are likely to weigh on the sector until details emerge,” ING analysts said in a note.
Copper, however, appeared to be supported near $9,000 a tonne, with the U.S. dollar =USD still on the back foot following two consecutive days of losses. A weak dollar makes greenback-priced metals cheaper for buyers with other currencies.
LME nickel CMNI3 was down 1.3% at $23,765 a tonne, retreating after hitting a three-week high in the previous session and advancing for four consecutive sessions on dwindling inventories and short-covering by speculators.
Technical resistance for LME nickel was seen at $24,200 a tonne, according to broker Marex. Rising output in Indonesia is likely to curb prices, analysts said.
LME aluminium CMAL3 fell 0.7% to $2,373.50 a tonne, zinc CMZN3 shed 0.7% to $2,915, tin CMSN3 was down 1% at $25,505 and lead CMPB3 dipped 0.9% to $2,115.50.
In Shanghai, aluminium SAFcv1 gained 0.3% to 18,670 yuan a tonne, zinc SZNcv1 added 0.2% to 22,660 yuan, nickel SNIcv1 rose 0.6% to 179,190 yuan, tin SSNcv1 climbed 0.5% to 205,560 yuan, while lead SPBcv1 fell 0.9% to 15,275 yuan.
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($1 = 6.8827 yuan)
(Reporting by Enrico Dela Cruz in Manila; Editing by Sonia Cheema)
((enrico.delacruz@thomsonreuters.com))
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