Metals down after banking surprise

Copper and other metals cut initial losses yesterday after China surprised markets by raising bank reserve requirements and investors assessed whether current demand forecasts were priced in.

"Near-term, the market is worried about tightening... but I think metals will stay at these high prices for most of the first half and the old saying of 'Sell in May and go away' could be correct as interest rates start to rise," MF Global analyst Edward Meir said.

He said copper would trade in a broad range of $6,700 to $7,900 over the next four to six weeks.