LONDON: Copper prices rebounded on Thursday as investors took another look at the impact of Donald Trump’s U.S. election victory and hoped for more stimulus from China.

Three-month copper on the London Metal Exchange (LME) gained 2% to $9,530 a metric ton by 1040 GMT, having slid as much as 4.5% on Wednesday to its lowest since Sept. 18.

“The long-liquidation rush yesterday is now being replaced by more of a reality check. The market is now adopting a more sanguine approach compared with the initial panic (after Donald Trump’s U.S. election victory),” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

Among investor concerns is Trump’s threat to impose tariffs on top metals consumer China, but Hansen noted that Trump took about 11 months to take action on tariffs during his first term as President.

Copper drifts up with all eyes on US election, China meeting

“The industrial metals market is now looking to Friday and what could come from China in terms of additional announcements of stimulus,” Hansen added.

The most-traded December copper contract on the Shanghai Futures Exchange (SHFE) closed 1.3% down at 76,480 yuan ($10,676.05) a ton. It earlier hit 75,520 yuan for its lowest since Sept. 23, tracking overnight losses in London.

The LME market was also supported by a weaker dollar index and expectations that the U.S. Federal Reserve will cut interest rates further later in the day.

A weaker U.S. currency makes dollar-priced metals cheaper for buyers using other currencies.

Despite the bounce, investors remain concerned that Trump could roll back electrification initiatives, dampening demand for metals such as copper.

“Trump’s anti-China, anti-green and dollar-supportive policies will keep metals sliding,” said Sandeep Daga, a director at Metal Intelligence Centre.

Among other metals, LME aluminium gained 1.7% to $2,659.50 a ton, nickel was up 1.9% at $16,425, zinc jumped 2.9% to $3,059 while tin rose 1.6% to$31,835 and lead was little changed at $2,047.50.