SHANGHAI, Oct 27 (Reuters) – Copper climbed to a 16-month high on Monday, driven by optimism over a potential U.S.-China trade agreement after officials from the world's two largest economies outlined the framework for negotiations ahead of their leaders' discussions. The most-traded copper contract on the Shanghai Futures Exchange rose 1.78% to trade at 88,420 yuan ($12,413.31) per metric ton, as of 0330 GMT. It hit 88,620 yuan a ton earlier in the session, refreshing a 16-month high since May 2024. The benchmark three-month copper on the London Metal Exchange rose 0.94% to $11,065.50 a ton, having touched a 16-month high of $11,076.50 a ton earlier in the session. Negotiators from both China and the U.S. reached a trade deal framework on the sidelines of the ASEAN Summit on Sunday. U.S. President Donald Trump and Chinese President Xi Jinping will be meeting on Thursday in South Korea. The framework will pause steep American tariffs on Chinese goods, U.S. Treasury Secretary Scott Bessent said, adding that he expects Beijing to delay its rare-earth export control regime by a year and revive purchases of U.S. soybeans. Chinese top trade negotiator Li Chenggang also confirmed the "preliminary consensus" with reporters. Most other base metals also gained after the framework was announced. Elsewhere among SHFE base metals, aluminium ticked upwards 0.24%, zinc added 0.27%, nickel rose 0.25%, tin increased 0.29%, while lead posted a loss of 0.29%. Among other LME metals, aluminium gained 0.73%, zinc rose 0.45%, nickel ticked up 0.06%, tin was up 0.27%, while lead was unchanged. DATA/EVENTS (GMT) 0900 Germany Ifo Business Climate New Oct 0900 Germany Ifo Curr Conditions New Oct 0900 Germany Ifo Expectations New Oct 1100 France Unemp Class-A SA Sep 1230 US Durable Goods Sep ($1 = 7.1230 Chinese yuan renminbi) (Reporting by Dylan Duan and Lewis Jackson; Editing by Harikrishnan Nair)
(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)
