[MARKET ANALYSIS] Base metals fall as China clamps down on HFTs

The clampdown on high-frequency trading (HFT) in China is causing a sell-off in base metals, as traders reassess liquidity and market dynamics.

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[MARKET ANALYSIS] Base metals fall as China clamps down on HFTs

PRE-MARKET INDIAN STOCK NEWS

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  • Crude futures trade steadily lower, with WTI Mar’26 dipping below USD 59/bbl while Brent Mar’26 oscillates around USD 63.50/bbl, despite a lack of geopolitical updates.
  • Precious metals continue their recent trend of weakness in the APAC session, with spot XAU slipping back below USD 4,600/oz from a session high of USD 4,621/oz. Spot silver trades weaker again, despite paring back losses in the U.S. session on Thursday, as XAG dips below USD 90/oz.
  • Base metals fall at the start of the final session of the week as China clamps down on high-frequency trading by removing servers from data centres. 3M LME copper fell from USD 13.16k/t to a trough of USD 12.95k/t and remains near session lows. Shanghai-traded metals were hit by the news, with nickel down by as much as 3%.
Context

This move may indicate stricter regulatory oversight, which could have lasting implications for trading volumes and price volatility in commodities. Watch for potential spillover effects on sentiment across global markets, particularly in metals and related sectors.

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