Shanghai basemetalsrise after China premier says to keep tax low

PHOTO

SINGAPORE - Industrial metals on the Shanghai Futures Exchange rose on Monday, after Chinese premier Li Keqiang said China would look to rein in taxes to support the economy.

Li said on Friday that China aimed to keep value-added taxes for the manufacturing industry at low levels and encourage companies to innovate, as rising external challenges may still destabilise the Chinese economy.

FUNDAMENTALS

* The most-traded copper contract on the Shanghai Futures Exchange rose 0.5% to 47,110 yuan ($6,838) a tonne at 0213 GMT, while nickel rose 2.9% and aluminium advanced 1%.

* Unionized workers at top copper miner Codelco's Chuquicamata mine voted on Saturday to reject the state miner´s final contract offer, paving the way for a vote to strike early next week, union leaders said in a statement.

* Profits earned by China's industrial companies contracted in April after a sharp rebound in the previous month, adding to concerns about the already slowing economy in the wake of a recent escalation in Sino-U.S. trade tensions.

* China's automobile sales will reach around 28.1 million units this year, unchanged from 2018 levels, state news agency Xinhua reported on Sunday.

* The London Metal Exchange is closed on Monday.

MARKETS NEWS

* Asia stocks edged up and the euro was confined to a narrow range after the weekend's European Parliament elections highlighted the deepening political fragmentation of the 28-country bloc.

DATA/EVENTS (GMT)

0300 Bank of Japan Governor Haruhiko Kuroda

delivers a speech at T20 Summit in Tokyo

PRICES

Three month LME copper

Most active ShFE copper

Three month LME aluminium

Most active ShFE aluminium

Three month LME zinc

Most active ShFE zinc

Three month LME lead

Most active ShFE lead