Copper rebounds from 6 year low as China cuts interest rates
Published on Wed, 26 Aug 2015 105 times viewed
Bloomberg reported that Copper rebounded from a six year low on Tuesday as China, the world’s top metals user, cut interest rates to spur economic growth and stem a rout in its equities that sent shock waves through global financial markets.
Copper for delivery in three months gained 2.3 percent to $5,065 a metric ton ($2.30 a pound) at 5:50 p.m. on the London Metal Exchange. On Monday, prices touched $4,855, the lowest since July 2009.
On the Comex, copper futures for December delivery gained 2.3 percent to $2.3005 a pound.
On the LME, aluminum, nickel, zinc, tin and lead also advanced.
The People’s Bank of China’s fifth rate cut since November and its move to lower the amount of cash banks must set aside, also spurred a rally in equities and emerging market currencies. In the U.S., the second-largest copper user, purchases of new homes rebounded in July. Builders are the biggest consumers of the metal.
A collapse in Chinese stocks Monday shook global markets and sent a gauge of commodities returns to the lowest since 1999.
Source : Bloomberg