Base metals prices on the Shanghai Futures Exchange were largely supported by positive sentiment during Asian morning trading on Friday November 2, after the Chinese authorities pledged preemptive and prompt actions on the economy, with nickel the best performer.
Sentiment for base metals improved on Friday after China said it will stimulate the economy and counter downward pressure with preemptive and prompt actions, local media outlets reported. This came after the PMI flagged deteriorating conditions in China, according to ANZ Research. “Base metals were stronger across the board as investors looked ahead to the potential for new stimulus measures in China boosting demand,” ANZ Research said. China’s politburo said the nation needs timely steps to counter downward pressure on the economy, ANZ added. Moreover, reports that talks between United States President Donald Trump and China’s Xi Jinping have been progressing well since yesterday signal that it is still possible for the US-China trade relationship to improve.