(Bloomberg) -- Copper rose with other industrial metals following a report of a possible fresh announcement of Chinese stimulus totaling 10 trillion yuan ($1.4 trillion), as investors also prepare for next week’s Federal Reserve rate decision.
The fiscal stimulus may be approved at a meeting by China’s top legislative body to be held Nov. 4-8, according to a Reuters report on Tuesday. That would help support the metal, which has retreated from a record high in May amid concerns about demand recovery in the top metals consuming country.
Investors are also assessing the likely path of US rate cuts. The central bank’s next policy meeting is on Nov. 6-7, and traders will be scrutinizing more economic data due later this week — including inflation and payroll figures — that may offer clues on the Fed’s easing trajectory into 2025.
There are signs that copper demand in China weakened even during the recent usual peak season. Spot copper last week traded at a 70 yuan-a-ton discount to the futures benchmark — the widest in three months — pointing to ample immediate supplies.
Copper may fluctuate at an elevated level amid optimism on the macro side, despite the lack of support from physical demand, Jinrui Futures Co. said in a note.
Prices of copper rose 0.3% to $9,555 a ton on the London Metal Exchange as of 10:30 a.m. in Singapore. Aluminum gained 0.4%, while other metals were also higher.
Iron ore edged down 0.3% to $103.30 a ton in Singapore.
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