KEY POINTS
- Copper rises for the third day on Chinese stimulus hopes.
- U.S. election results may drive copper to $10,000 per ton.
- China’s services activity has expanded at the fastest pace since July.
Copper rose for a third straight day on expectations that Beijing will introduce additional support measures. Analysts said prices could see further gains once the outcome of the U.S. election is confirmed.
Copper gains momentum over China’s economic stimulus
Mining.com stated that prices rose up to 0.9% after data showed China’s services activity grew at its fastest rate since July, following stronger-than-expected indicators from both official and private factory metrics last week. These reports suggest recent stimulus efforts may be beginning to show results. The Chinese government is expected to announce further economic support measures when the National People’s Congress Standing Committee meets this week, with senior officials hinting at a major update, according to Bloomberg Economics.
Metals, including copper, fell last month as initial optimism around China’s economic measures gave way to doubts over their impact. Investors are also closely watching the outcome of Tuesday’s U.S. election, with initial results expected the following day in Asia.
Analysts predict a potential surge in metal markets
According to Citigroup Inc., copper has rallied on election day in nine of the last 10 election cycles. The metal could temporarily reach $10,000 per ton over the coming week, driven by expectations of continued monetary easing in China and the U.S., a risk-on shift in stocks if Donald Trump wins, or a potential easing of tariffs if Kamala Harris is victorious.
According to mining.com, as of 4:11 p.m. local time on the London Metal Exchange, copper had advanced 0.7% to $9,759.50 per ton. Aluminum also gained 1.4% after data from Shanghai Metals Market indicated Chinese inventories hit their lowest levels since February.
