(Bloomberg) -- Copper rose after whipsawing through the week as traders weighed whether Chinese stimulus measures can deliver a sustainable boost to demand.
There was positive sentiment among Chinese attendees at LME Week in London, which contrasted with a more bearish mood among their Western counterparts. Doubts still linger about the strength of Beijing’s efforts and what they’ll mean for China’s long-term growth.
“A surge in demand would require substantial fiscal support, details of which have not been announced,” analysts at Capital Economics said in an emailed note. “Even if policy support is stepped up, construction activity is still likely to fall by the end of the decade, which will weigh heavily on metals prices.”
Chinese financial markets have been closed for holidays most of this week, and their reopening Tuesday is hotly anticipated.
Copper jumped following the release of American labor-market data Friday, which came out stronger than expected, indicating a generally resilient US economy. The positive outlook may damp expectations for another large interest-rate cut at the Federal Reserve’s next meeting.
Copper futures rose 1.1% to $9,978 a ton on the LME as of 3 p.m. in London. All base metals trader higher, with aluminum adding 1.4% and nickel gaining 2%.
--With assistance from Jason Scott, Mark Burton and Sana Pashankar.
©2024 Bloomberg L.P.