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Metals prices remain tight as the market waits for US-China summit

Investors were waiting for a weekend meeting in Switzerland between U.S.-China trade officials to see if they could bring down the trade war.

As of 1400 GMT, the benchmark copper price on London Metal Exchange (LME), was down by 0.1% at $9,533.5 per metric ton.

Scott Bessent, U.S. Treasury secretary, told Fox News that he believes the goal is to de-escalate tensions.

China's central banking governor announced Wednesday that, to support the economy in the midst of a long-running trade war with the U.S. the bank would, for the very first time, reduce the required reserve ratio for banks by 50%.

On Tuesday, U.S. president Donald Trump announced that he will be reviewing potential trade agreements over the next two week to decide which to accept.

A trader stated, "We have been eagerly awaiting the advancement of relations between the U.S.A. and China as we had hoped to see the potential agreement."

Other London metals saw aluminium drop 0.1%, to $2.425 per ton. Zinc rose 0.1%, to $2.635, while lead fell 0.1%, to $1.921. Tin was up 0.1%, to $32,020, and nickel was unchanged at $15.700 a tonne.

The Shanghai Futures Exchange's (SHFE) most traded copper contract rose by 0.7%, to 78.220 yuan (10.759) per tonne, thanks to rapidly declining stocks that the SHFE monitors.

SHFE aluminium fell by 0.9%, to 19,680 Yuan per ton. Zinc dropped 0.3%, to 22,350 Yuan. Lead declined by 0.2%, to 16,670 Yuan. Nickel rose 0.1%, to 124650 Yuan. Tin was up 0.4%, to 261,490 Yan. (Reporting and editing by Mrigank Dahniwala; Violet Li, Lewis Jackson)

(source: Reuters)