Commodities: WTI, copper catch bid on talk of China-US trade negotiations

Commodities received a further unexpected boost on Monday, following fresh reports of possible progress in trade talks between China and the US.

On Friday, the Journal had reported that negotiators from both countries were working on a road-map to resolve tensions between the two powers by the time of a summit between their leaders scheduled for November.

Despite their incredulity, traders pushed fronth month West Texas Intermediate crude oil futures up by 0.79% to $66.43 a barrel on the NYMEX, alongside gains of 1.71% for RBOB gasoline to $2.94 per gallon.

To take note of, on 17 August Baker Hughes reported that the number of US oil rigs in operation had remained flat at 869 over the latest week.

Also boosting sentiment was news in Monday's Financial Times that China's banking regulator had instructed the country's lenders to boost financing for infrastructure projects and exporters, even as a negotiating team, led by vice-commerce minister Wang Shouwen, prepared to travel to the US, on Wednesday, for two days of talks.

That report helped goose three-month copper futures from $5,968 per metric tonne at the start of trading up to $5,934 by the close.

Gold futures were also ahead on COMEX, with the December contract for the yellow metal bouncing back by 1.04% to $1,196.50/oz..

Commenting on the session, analysts at Sucden Financial wrote: "The new week started quietly with LME metals mostly higher from Fridays close. Equity markets across Asia tracked higher, followed by those in Europe and US as traders and investors cling to hopes that Sino/US trade tensions will ease, and ahead of the annual Jackson Hole Economic Policy Symposium, a meeting of central bankers due later this week. The Yuan was also firmer as PBOC raised the daily reference rate."

From a bird's ey view, as of 1950 BST the Bloomberg commodity index was higher by 0.17% as the US dollar spot index retreated by 0.19% to 95.92.