FxWirePro: Metals slip as economic concern weigh over trade optimism

Metals were gaining in the morning trade as positive news from the ongoing Sino-American trade negotiations hit the market,

• Wall Street Journal (WSJ) reported earlier in the day that the United States and China have not only inched closer to an agreement but talks are in the final stages of completing an agreement. According to reports, both sides have agreed to work together in removing tariffs and non-tariffs barrier.
• A spokesman for China’s National People’s Congress (NPC) commented that the negotiations are moving in the right direction as China seeks cooperation with the United States while safeguarding its sovereignty.
• China reportedly considering new that to protect intellectual properties; this piece of the update is quite positive as IPOs have been one of the sticking points in the negotiations.
• Metals were up in morning trade over trade optimism. Widely accepted industrial barometer copper was up almost a percent.

However, optimism faded as weak economic numbers hit the market,

• The global measure of Citi's economic surprise index fell below its 2018 low and is now sitting at its lowest level in nearly 5 years.
• South Korea’s manufacturing PMI at 47.2 in February; lowest since June 2015
• Taiwan’s manufacturing PMI at 46.3 in February, the lowest in 39 months.
• China’s manufacturing PMI reported last week, also pointed to a contraction in the manufacturing sector.
• Us manufacturing PMI, also reported last week, weakened to 54.2 in February, the lowest level since December 2016.

Metals are sliding fast,