London 16/06/2016 - Base metals were largely lower during a jumpy Thursday LME session, reversing direction from the previous session, against a backdrop of widespread negativity in global financial markets, traders said.
"Equities are down, oil is down, the euro is down - the message today is not one to encourage the buy side. And there is yet more uncertainty around the UK Brexit vote - none of that helps sentiment," a trader said.
European and US stock markets turned lower today after both the US and UK left interest rate policy unchanged while highlighting economic uncertainty surrounding the outcome of next week's UK referendum. The euro, meanwhile, was around 1.1160 against the dollar, not far off a two-week low.
In other commodities, spot Brent crude was soft around $47.25 per barrel, near a one-month low, while safe-haven gold was above $1,300 per ounce at 10-month highs.
Overnight, the policy board of the US central bank, the FOMC, noting slowing growth in the US labour market, unanimously voted to maintain the Federal Funds rate at 0.25-0.5 percent.
Today's US data flow was mixed and did little to excite. Weekly jobless claims were higher than expected at 277,000 while the May CPI rose the expected 0.2 percent. But the Philly Fed manufacturing index was 4.7 in June against the forecast 1.1.
For the LME, the current trend of erratic and unpredictable daily trends is expected to continue while global markets and investors become increasingly fixated on the UK vote a week today.
"It is hard to tell where base metals will be heading over the short-term," INTL FCStone's Ed Meir said in a report.
In the metals, copper fell back below $4,600 to trade last at $4,537 per tonne, down $97 on Wednesday's close. Earlier, warehouse stocks fell a net 3,125 tonnes to 199,025 tonnes and cancelled warrants climbed 1,125 tonnes to 37,825 tonnes.
Aluminium fluctuated either side of $1,600 today, finally ending at $1,604, down $22. Inventories fell 6,450 tonnes to 2,452,400 tonnes, the lowest now since January 2009.
In others, nickel swung under $9,000 again to finish at $8,870, a $175 loss, although stocks fell 516 tonnes to 388,620 tonnes, a fresh low since November 2014.
Zinc buckled to one-week lows under $2,000 and finished at $1,989, down $48 - the recent spell of tightness has run its course. Earlier, stocks and cancelled warrants both fell 925 tonnes to 382,275 and 32,550 tonnes respectively.
Lead bucked the trend after meeting some support at two-week lows under $1,700 and was last at $1,704, a $7 advance. Inventories fell 150 tonnes to 185,600 tonnes.
Tin also closed higher, posting a $30 gain at $17,005, after stocks declined five tonnes to a one-month low of 6,300 tonnes.
Steel billet held at a firm $300/325 while cobalt was at $23,500/24,000. Molybdenum was marked higher with physicals to $16,350/16,850.
(Additional reporting by Ewa Manthey, editing by Mark Shaw)