London 07/01/2016 - Base metals ended a volatile Thursday session mixed on the LME - global financial markets reacted with relief after Chinese authorities suspended the circuit breaker rule on the Shanghai stock exchange ahead of the Friday open.
Base metals came under renewed selling pressure today on fears about the health of China's economy, with copper and zinc dropping to their lowest since 2009.
China's central bank cut the yuan fixing rate to the lowest since April 2011 today, triggering a renewed sell-off in equities - SCI trading was halted for the second time this week after it plunged below the key seven-percent level. It closed at 3,125.002, a 7.04-percent loss.
All eyes are now on the Chinese market reopening tomorrow, market participants noted.
In today's data, German factory orders at 1.5 percent were better than expected but the country's retail sales undershot at 0.2 percent. The EU retail PMI was as expected at 49.0, the unemployment rate at 10.5 percent outperformed but retail sales missed at -0.3 percent.
US weekly unemployment claims were 277,000, above the forecast of 271,000, but lower than last week and below the 300,000 psychological mark.
Additionally, Challenger job cuts in December stood at -27.6 percent, missing the consensus forecast of -13.9 percent.
The week's key event will be tomorrow's non-farm payrolls for December, which are expected at 203,000, down from the previous reading of 211,000.
In the metals, copper slumped to its lowest since May 2009 at $4,430 before clawing back some lost ground to end at $4,524 per tonne, still down $96 on Wednesday's close.
The metal is mostly shrugging off news that China's state stockpiling agency is expected to buy up to 150,000 tonnes of domestic copper this month, traders noted.
"This is not going to change anything. The fundamental picture remains the same - the market is oversupplied and the SRB sitting on a pile of copper will not help with that," one trader said.
Volumes were strong - more than 30,000 lots of copper changed hands on Select by the kerb close.
Stocks climbed a net 2,150 tonnes to 238,000 tonnes. In spreads, cash/threes was last at a backwardation of $3 although the cash dates are in a small contango.
Aluminium concluded at $1,476, up $1 - more than 16,000 lots traded on Select. Stocks and cancelled warrants both dropped 5,800 tonnes at 2,877,000 tonnes and 1,061,225 tonnes respectively.
Nickel was last indicated at $8,500/8,505, down $5. It bottomed out at $8,220 earlier - its weakest since November. Inventories fell 1,530 tonnes to 438,828 tonnes.
Lead at $1,659.50 was down $20, having fallen to its lowest since December 17 earlier at $1,613; stocks rose 375 tonnes to 191,275 tonnes.
Zinc concluded at $1,506, up $35.50 and off its earlier May 2009 low of $1,433. More than 16,000 lots changed hands on Select. Stocks fell 1,150 tonnes to 456,175 tonnes.
Tin was last unchanged at $13,730. Stocks rose 120 tonnes to 6,245 tonnes.
Cobalt and molybdenum both traded on the LME today, with the business on Select the first trades registered on the platform since autumn 2015. Cobalt was last indicated at $23,500/24,000 and molybdenum and $11,800/12,000. Two lots of cobalt and two lots of molybdenum traded by the kerb close.
Steel was last at $185/235.
(Additional reporting by Kathleen Retourne and Martin Hayes, editing by Mark Shaw)