(Bloomberg) -- Copper and iron ore rose with most industrial commodities as Federal Reserve Chair Jerome Powell flagged the central bank was on course to cut rates next month, which would be a boost for global growth.
The central bank left rates unchanged on Wednesday but policymakers signaled they were closer to reducing borrowing costs. Fed monetary tightening since 2022 has weighed on demand for industrial commodities both domestically and abroad.
The potential relief comes after a tough July for metals that saw all major London Metal Exchange contracts notch monthly losses. Poor economic data from China — the world’s top consumer — and a lack of large-scale stimulus to address it has depressed prices.
More gloom came on Thursday with a gauge of Chinese manufacturing activity showing contraction for the first time in nine months. Earlier this week, the country’s Politburo pledged to help boost consumer spending, although it avoided outlining more specific policies.
Copper gained 0.5% on the LME to $9,267.50 a ton as of 10:27 a.m. Singapore time. Aluminum was 1.4% higher, while zinc and lead also gained. Iron ore rose 0.6% in Singapore.
©2024 Bloomberg L.P.