Copper drifts on limited China buying, BOJ stimulus supports
The move had a positive impact on equity markets which in turn helped to lift metals, said a Hong Kong Based trader.
"But I haven't seen any change on the fundamental side which remains quite weak. Traders tend not to build positions until after the Lunar New Year when industry begins restocking," he added.
Markets in China will be closed from Feb. 11-15.
European stock index futures pointed to a slightly higher start on Wednesday on expectations of a strong fourth-quarter earnings season and on signs that a four-month extension of the U.S. debt limit could be passed later in the day.
The White House on Tuesday welcomed signals by Republican leaders in the House of Representatives that they aim to pass a nearly four-month extension of the U.S. debt limit, saying the move defuses fears of a damaging US debt default.
Still, without further fresh signs of growth from China, metals could enter a soft patch in the near term, Sweden's SE commodity research division wrote in a research note.
"With the recent (dubious) rally on more positive Chinese sentiment having lost momentum, we see better buying opportunities in H1," it said.
"Most likely, the exclusive market focus on Chinese economic conditions will end this year as OECD demand appears increasingly likely to improve." MARKETS NEWS
BHP Billiton , the world's biggest mining company,
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