MARKET TALK: LME Trade Cautious, Hedge Fund Fallout Concern

LME market participants remain edgy, worried about further fallout from possible problems with hedge fund Red Kite, though some say market reaction is overdone. "People are still worried and there are a lot of rumors going round," says Hong Kong-based trader. Uncertainty, limited buying activity in Asia expected before Chinese New Year could cap metals' gains; copper nearby resistance at $5,420/ton. LME 3-month copper ticks up to $5,375/ton, up $45 on Monday PM kerb.