METALS-Shanghai metals mixed, strong dollar caps gains
Updates prices
By Violet Li and Mei Mei Chu
SHANGHAI, Dec 26 (Reuters) - Base metal prices on the Shanghai Futures Exchange (SHFE) were mixed on Thursday as positive macroeconomic news from China provided some support, but a strong dollar index limited the rise.
"Recent fiscal meetings in China have introduced proactive fiscal policies, including raising the budget deficit, to support market expectations of a positive increase in demand for metals," analysts at Jinrui Futures said.
China will raise its budget deficit ratio, intensify fiscal spending and accelerate expenditure in 2025, the finance ministry said on Tuesday.
Furthermore, the country plans to boost fiscal support for consumption next year by raising pensions and medical insurance subsidies for residents and expanding trade-ins for consumer goods, according to the finance ministry's announcement.
Meanwhile, the U.S. dollar index hovered near the two-year high of $108.43 hit last Thursday and was trading at $108.11 at 0330 GMT. This will exert some pressure on copper prices.
A stronger dollar makes it more expensive for other currency holders to buy greenback-priced commodities, thus keeping metals prices under pressure.
The most-traded January copper contract on the Shanghai Futures Exchange (SHFE) SCFcv1 climbed 0.2% to 74,220 yuan ($10,168.66)a ton by 0330 GMT, the close of Asia morning trade session.
SHFE aluminium SAFcv1 dropped 0.5% to 19,815 yuan a ton, lead SPBcv1 slid 0.1% to 17,315 yuan, tin SSNcv1 fell 0.1% at 244,680 yuan, while nickel SNIcv1 rose 0.6% to 126,240 yuan and zinc SZNcv1 advanced 0.6% to 25,515 yuan.
The London Metal Exchange (LME) is shut on Thursday for the Boxing Day holiday.
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($1 = 7.2989 Chinese yuan renminbi)
(Reporting by Violet Li and Mei Mei Chu; Editing by Sumana Nandy)
((Violet.Li@thomsonreuters.com;))
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