MARKET OVERVIEW - Basic Metals Drop in Shanghai as Stimulus Expectations Fall Short in China

Forex - In Shanghai, base metal prices fell as China's recent stimulus package fell short of expectations. The December copper contract on the Shanghai Futures Exchange (SHFE) declined by 0.9% to 76,570 yuan per ton ($10,668.06) at 04:50 GMT. Aluminum traded at 21,445 yuan per ton with a 1% drop, nickel at 128,240 yuan per ton with a 1% decrease, zinc at 24,885 yuan per ton down 1.2%, lead at 16,870 yuan per ton with a 0.1% decrease, and tin at 260,280 yuan per ton down 0.5%. China's top legislative body approved a $1.4 trillion package on Friday to alleviate local governments' "covert debt" burdens instead of injecting direct money into the Chinese economy as some investors had hoped. Data indicated that consumer prices in China rose at the slowest pace in four months in October, while producer price deflation deepened. Analysts noted that China's debt swap plan has disappointed and investors will monitor Beijing's key economic data this week to gauge demand. The market expressed concerns over U.S. President-elect Donald Trump’s threats to impose tariffs on Chinese imports, which could negatively impact metal demand. At the London Metal Exchange (LME), three-month copper rose by 0.3% to $9,473 per ton. Aluminum traded up by 0.1% to $2,624 per ton, zinc increased by 0.4% to $2,990 per ton, lead was up by 0.2% to $2,028.5 per ton, tin rose by 0.1% to $31,680 per ton, and nickel fell by 0.7% to $16,285 per ton.