Connect with us

Trending News

Copper edges higher after China stocks rally 3.5%

Published

on

Copper futures rise as Chinese markets stabilize

Investing.com – Copper prices edged higher on Wednesday, as Chinese markets rallied after the previous sessions’ broad selloff and as investors eyed the Federal Reserve’s upcoming policy statement.

for September delivery on the Comex division of the New York Mercantile Exchange tacked on 1.3 cents, or 0.53%, to trade at $2.415 a pound during European morning hours.

A day earlier, copper rose 4.9 cents, or 2.08%, to end at $2.402 as investors returned to the market to seek cheap bargains after prices hit a six-year low of $2.336 on Monday.

The took investors on another roller coaster ride on Wednesday, rising more than 1% after the open, only to turn negative after the midday break, and then rise again to end up 3.5%.

Equity markets in China plunged sharply earlier this week, forcing policymakers to intervene and provide measures to boost liquidity and calm investors.

Chinese regulators pledged to buy more shares to stabilize markets, while the country’s central bank hinted at more policy easing if needed.

On Monday, the Shanghai Composite tumbled 8.5%, the biggest one-day drop since February 2007, amid reports that government buying of stocks and securities has slowed.

Market players are concerned that the plunge in the stock market could spread to other parts of the Chinese economy, triggering fears that the Asian nation’s demand for the industrial metal will decline.

China is the world’s largest copper consumer, accounting for almost 40% of world consumption last year.

Elsewhere, for December delivery inched up 90 cents, or 0.08%, to trade at $1,097.60 a troy ounce, while for September delivery added 0.8 cents, or 0.05% to trade at $14.65 an ounce.

Fed officials are expected to provide further signals that the central bank could raise rates as soon as September if the economy continues to improve as expected when it releases its rate statement later in the session.

Gold has been under heavy selling pressure in recent months amid speculation the Fed will hikes rates for the first time in nine years this autumn.

Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data .

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published.

Continue Reading

Subscribe To Our Newsletter:

President Trump Playing Cards offer
Raven Steelworks
Swing Trader Course offer

Copyright © 2020 The Capitalist. his copyrighted material may not be republished without express permission. The information presented here is for general educational purposes only. MATERIAL CONNECTION DISCLOSURE: You should assume that this website has an affiliate relationship and/or another material connection to the persons or businesses mentioned in or linked to from this page and may receive commissions from purchases you make on subsequent web sites. You should not rely solely on information contained in this email to evaluate the product or service being endorsed. Always exercise due diligence before purchasing any product or service. This website contains advertisements.