Shanghai futures traders hit the sell button for the second consecutive day with heavy price falls in the industrial metal complex early in the session before a recovery towards the close of play.
Zinc, yesterday’s big loser, recovered 4% in trade, while Nickel, which avoided the worst of the selling yesterday was down more than 4% at one stage. But it staged an afternoon rally to be down just 1.38%. Aluminium was down 1.17% today while copper managed to recover losses of more than 1% at one stage to be down just 0.5%.
Interestingly the volatility has come at the same time that the onshore Renmibi fix has been sliding again to the weakest levels since August.
Unlike yesterday’s selling the weakness in China did not filter into the bigger markets. US copper futures holding for January delivery are up 0.62% to $2.03 while Nymex crude futures for January were also higher rising more than 1% to $42.23 a pound.
Here’s the latest oil chart showing that the Saudi interest in working to stabilise prices last night might be just the salve the market needs.
That suggests whatever is going on in Shanghai is specific to traders and positions there. At least for the moment.
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