business

Buyer closes the week with losses after receiving "bad news" from China

Buyer closes the week with losses after receiving "bad news" from China

With a fall of 0.74%, copper was closed on Friday at the London Metal Exchange (LME), trading at US $ 2,6997 per pound, compared to US $ 2,71747 on Thursday and the US $ 2,67211 on Wednesday.

The red metal slows down the three successive increases recorded this week after the publication of data on the economy of the main buyer of the national raw material. China's economic momentum weakened again in August and tested the authorities' nerves as they prepared for a possible new round of trade talks with their American counterparts.

The impact of commercial tensions remains the most important factor in the price of copper, which despite the above increased the average for the month to US $ 2.67461, while the following year fell to US $ 3.02536. The future three-month rate on his part ended at US $ 2.70568 per pound, with a negative variation of 0.81% compared to Thursday (US $ 2.72791).

News from China

Growth in fixed assets in China slowed in the first eight months of the year at the slowest pace since at least 1999 and infrastructure investment grew by only 4.2 percent, the weakest growth since the beginning of the year. data series in 2014. This indicates that the policy to speed up these expenditures takes time to take effect despite the fact that industrial production was sustained in August and the retail sales were accelerated.

A slowing economy is weakening China with a view to possible new trade negotiations that both parties are evaluating, contributing to the risk of further delays if US President Donald Trump imposes tariffs for another US $ 200 billion. Chinese products. Trump used Twitter yesterday to provoke China in connection with the alleged weakness and tweeted that the fall of its stock market indicated that the country is under pressure to reach an agreement.

"It is not a desirable position to enter into new trade negotiations with the US," said Katrina Ell, an economist at Moody's Analytics in Sydney. "The data on China's activity in August confirm that the economy is still on a growth path and that the pace may be slowing somewhat faster than the authorities wanted."

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