Copper, Nickel Rebound as China Intervenes in Stock Market – by Agnieszka De Sousa and Luzi-Ann Javier (Bloomberg News – January 5, 2016)

http://www.bloomberg.com/

Copper climbed the most in two weeks and nickel gained after China sought to support its stock market following Monday’s rout that sent metal prices tumbling.

State-controlled funds in China bought equities and regulators signaled a selling ban on major investors will remain beyond this week’s expiration date, according to people familiar with the matter. Most metals traded in London and a gauge of mining shares rose.

On Monday, copper fell the most in three weeks, helping take an index of six main contracts on the London Metal Exchange to its biggest slump since September after a plunge in mainland China shares triggered a trading halt.

Slowing economic growth in the Asian country, the biggest commodities buyer, has curbed demand for metals and sent prices to near the lowest in six years. That’s prompted Chinese refiners and some of the world’s top miners to pledge output cuts to reduce a glut of material.

“Metals are getting a Chinese intervention shot in the arm, but the markets are still having trouble finding their feet,” Michael Turek, the head of base metals at BGC Partners Inc. in New York, said in a note.

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