Copper price surge lifts LME mood

Thu, 08 Dec 2016 07:15:27 +0000

By Nation Reporter

COPPER has continued its impressive run giving investors the confidence that is seen to be a turn for the better, and the improving sentiment can only be a positive for the kwacha, this is according to the First National Bank (FNB) daily market briefs.

The Bank reports that the market conditions were little changed on Tuesday with widened broker prices suggestive of reducing liquidity, with visible firm prices that were higher from K9.820-K9.900.

The Bank saw the similar conditions on Tuesday and Wednesday with rate likely to print K9.900.

The bank further reports that there had not been much activity in the bond market following the auction last week, expecting to only see some activity when demand builds up.

Meanwhile the Bank of Zambia will from next year hold bimonthly Bond auctions and increase tender sizes from K800mn to K1bn, previously Bond auctions were held quarterly.

The bank noted that the interbank was quiet, as the banks were squaring up their positions with the year coming to a close.

And in related development, the bank reports that London copper drifts as U.S. manufacturing data provides buoyancy.

However, London copper was treading water on Wednesday, buoyed by signs that global manufacturing activity will return to a healthier footing next year.

And reports indicated that oil prices fell on Wednesday on persistent doubts a planned crude production cut led by OPEC and Russia would be deep enough to end a supply overhang that has dogged markets for over two years.

However, the euro and dollar were steady on Wednesday as traders paused for the outcome of Thursday’s European Central Bank policy meeting, which may set the tone for currency markets after the sharp moves in the wake of last month’s U.S. election.