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Base metals rise on bargain hunting despite spreading virus

Reuters - London industrial metals prices rose on Tuesday, recovering slightly after dropping in the previous session, but gains were capped as the coronavirus continued to spread quickly outside China.

Hopes that China will support the economy with more stimulus also supported sentiment.

Three-month copper on the London Metal Exchange rose 0.6% to $5,724.50 a tonne by 0638 GMT, aluminium edged 0.2% higher to $1,702.50 a tonne, nickel advanced 1.8% to $12,655 a tonne, zinc rose 0.5% to $2,057 a tonne and lead increased 1.1% to $1,840 a tonne.

Worries over the virus spreading quickly in Italy and South Korea had pushed LME copper to a two-week low in the previous session, while zinc dropped to its lowest since June 2016 amid rising stockpiles.

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