Copper up from lowest in nearly a month on China stimulus hopes

12th January 2024 By: Bloomberg

Copper rose from its lowest close since mid-December, as inflation data from China bolstered calls for stronger stimulus measures from Beijing.

China’s consumer prices posted their longest streak of declines in more than a decade. While that underscores weak growth at home, it also boosts the prospect of more action from Beijing to shore up an economy suffering weak confidence.

The central bank in China is likely to cut interest rates and pump more cash into the financial system as early as Monday to counter deflationary pressures, according to a Bloomberg survey of economists.

Copper is still headed for a weekly fall, extending a decline since the start of the year on tempered expectations for lower US interest rates. Consumer prices in the nation accelerated at the end of 2023, data on Thursday showed, prompting one Federal Reserve policymaker to say that March was too early for a cut.

Copper rose 0.6% on the London Metal Exchange to $8 403 a ton at 12:44 p.m. Shanghai time, and was down 0.7% this week. Aluminum was little changed.