(Updates throughout, changing date from HANOI)
LONDON, Dec 21 (Reuters) – Copper prices plummeted Monday as a more contagious strain of the coronavirus threatened to further wreak havoc on the global economy and investors squandered more risky assets.
Allotment and oil prices fell and the dollar strengthened as countries including France, Germany, Italy, the Netherlands, Switzerland, Israel and Canada closed travel links with Britain, where diseases are on the spike.
Benchmark copper on the London Metal Exchange (LME) fell 1.4% at $ 7,871 per tonne 1153 GMT.
European stocks fell about 2.5% and oil around 5%, and the biggest gain from the dollar since September made metals at the price of the currency more expensive for buyers outside the United States.
“The threat of transmission from this virus is a classic,” said Julius Baer analyst Carsten Menke.
Copper had risen to $ 8,028 per tonne last week, the highest level since 2013, with strong demand in China, government stimulus and the spread of coronavirus vaccines encouraging speculators to enter for the market.
“The last part of the rally was driven by a bullish market move,” Menke said. “Too much profit meant that it was down by about 10%. What was needed was motivation. ”
STIMULUS: U.S. transportation leaders have agreed on a $ 900 billion package to help the economy and individuals suffering from the pandemic coronavirus infection. There are likely to be votes on the deal on Monday.
POSITION: Copper prices could slip if speculative investors who built their longest net position on the Comex exchange since 2017 are falling and declining their positions.
OTHER METALS: LME aluminum fell 1.9% at $ 2,017.50 per ton, zinc lost 1.5% to $ 2,829, lead fell 3.6% to $ 1,965.50 and tin was 1.1% lower at $ 19,830.
Nickel rose 0.2% to $ 17,525 per tonne. (Reporting by Peter Hobson; edited by David Evans)