(Bloomberg) -- Copper headed for its biggest weekly advance since May, after China’s latest stimulus pledge and the outlook for further US interest-rate cuts supported sentiment.
The economic bellwether has jumped almost 6% this week on the London Metal Exchange, climbing back above $10,000 a ton, following China’s announcement of a blitz of measures to boost growth. The vow from Beijing officials to deliver aid for its struggling real estate sector — which has long hampered the consumption of industrial metals — also bolstered the outlook.
The metal edged down slightly on Friday, though pared some of its earlier losses as the Federal Reserve’s preferred gauge of underlying inflation rose mildly in August, cementing bets for further rate cuts.
“The macro aspects continue to remain positive with the recent policy expectations, while there’s more copper destocking activity before the Chinese public holidays in October,” Jinrui Futures Co. wrote in a note, adding that the rally may still have more to run.
Copper slipped 0.4% to $10,038 a ton as of 3:15 p.m. local time on the LME, on track for a third weekly advance. Most other base metals moved higher Friday, with zinc set for an 8% weekly jump, the most since April. Aluminum is up 6.3% this week.
--With assistance from Sana Pashankar.
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