London 28/06/2016 - Base metals were in a more confident mood during Tuesday's LME session, posting gains right across the complex - investors looked to move back towards risk-based assets, traders said.
Copper and nickel rose strongly, hitting their highest for around two months, while zinc was at its best for two weeks. Other global markets have steadied after sharp falls following the UK's shock vote last Thursday to leave the European Union.
"It's risk-on again - global markets seem to be stabilising, equities are up, oil is up while the dollar and gold are easing slightly," a trader said.
The UK equity market was up more than 2.5 percent, with the FTSE above 6,140, while the US Dow Jones rose some 0.8 percent. The dollar slipped back to around 1.1050 against the euro, with safe-haven gold down some $9.00 per ounce to $1,315.
The change in direction took place despite further potentially negative developments surrounding the UK EU vote. S&P stripped Britain of its last remaining triple-A credit rating on Monday, cutting its rating by two notches to 'double-A'. Fellow ratings agency Moody's had rated the UK at Aa1 but changed the country's outlook to negative from stable, while Fitch Ratings reduced its UK rating one notch to 'AA'.
In today's data, the US final GDP in the first quarter at 1.1 percent was a touch above the 1.0-percent forecast. The final GDP price index at 0.4 percent missed the expected 0.6 percent. Elsewhere, German import prices climbed 0.9 percent.
Short-term price moves and activity are set to remain volatile, with the end of the first half approaching as well.
"The question for today is whether the upward move we are now seeing in most markets will turn out to be a dead-cat bounce or perhaps the start of a bottoming process. We suspect that it will be the former as we need to see more clarity out of the UK/EU standoff before markets can breathe somewhat easier," INTL FCStone analyst Edward Meir said.
Im copper, prices climbed back above $4,800 to finish at $4,818 per tonne, up $108 on Monday's close, having peaked at $4,830 earlier. In today's warehouse data, copper stocks rose a net 1,250 tonnes to 192,950 tonnes and cancelled warrants were down 600 tonnes to 51,225 tonnes.
Nickel touched a high of $9,345 before closing at $9,340, a $360 gain. Earlier, inventories fell 708 tonnes to 381,084 tonnes, the lowest since late-2014 again.
In others, aluminium was last at $1,624, up $27.50, while stocks and cancelled warrants both fell 8,675 tonnes to 2,400,300 tonnes and 1,032,025 tonnes respectively.
Zinc was last at $2,075, an $80 advance, with stocks and cancelled warrants both slipping 1,200 tonnes to 428,575 tonnes and 20,175 tonnes respectively.
Lead finished at $1,735, up $33, while stocks and cancelled warrants both edged 275 tonnes lower to 185,350 tonnes and 73,075 tonnes respectively. Tin posted an $80 gain to conclude at $16,900, with stocks declining 20 tonnes to 6,085 tonnes.
Steel billet was indicated at $300/325, cobalt at $23,500/24,000 and molybdenum at $16,500/17,000.
(Additional reporting by Ewa Manthey, editing by Mark Shaw)