Shanghai Futures Exchange copper rallied more than 5 percent at one point before ending up 4.4 percent at 41,140 yuan ($6,452) on Wednesday, having hit a two-month peak at 41,550. Prices broke the 100-day moving average, which sent a buy signal to momentum-tracking funds. Across other ShFe metals, nickel and ShFE zinc rose 2 percent, with aluminium and lead up 1 percent.
China's imports tumbled last month, raising concerns about the health of the world's second-largest economy and its contribution to global growth. This also raised bets for more measures that may increase metals demand, such as faster approvals for infrastructure projects.
"Copper's market signals highlight price support (with)upside risk," Morgan Stanley said in a note. China's economy still faces relatively large downward pressure, the head of the country's top economic planner said on Wednesday. Broker Kingdom Futures noted that in copper and nickel markets traders were looking to buy December or January put options. "This suggests along with more downward adjusted price forecasts...this rally will not persist in the long term."
Comments
Comments are closed.