Metals mixed amid China’s rate cut

Metals experienced a mixed performance after the worst weekly decline in nearly two years, with a rate cut in China mitigating further losses.

The LMEX Index, which tracks six base metals, dropped 5.6 per cent in London last week. Copper continued its retreat from a record high set in May, driven by concerns over weak Chinese demand and rising global inventories.

On Monday, these worries were somewhat alleviated when China’s central bank reduced a key short-term policy rate for the first time in nearly a year to stimulate growth. Additionally, US President Joe Biden’s decision to end his reelection campaign weakened the dollar, making commodities less expensive for many buyers.

By 12:30 pm in Shanghai, zinc had risen 0.4 per cent to $2,786.50 per ton on the London Metal Exchange (LME). Tin was up 0.3 per cent, while copper fell 0.2 per cent and aluminum decreased by 0.4 per cent. Iron ore dropped 0.3 per cent in Singapore to $104.25 per ton.

Attribution: Bloomberg