COMEX Copper Off One Week Low On Supportive Equities

16 Aug 2022 , 04:05 PM

COMEX Copper futures tried to stabilize today as supportive equities and a reduction in Chinese borrowing cost proved beneficial to the red metal. The counter had crashed in last session, testing a one week low amid firm US dollar index. Worries over industrial demand in coming months are likely to weigh on the sentiments in near term but positive cues from equities are also triggering some buying at the lower spectrum. Asian stocks rose broadly on Tuesday. Chinese shares finished marginally higher amid expectations that policymakers would roll out more stimulus measures. European shares edged up decently. UK’s FTSE added half a percent. The Dow stayed supported on sustained buying, adding half a percent. The COMEX Copper futures are trading at $3.61 per pound, up marginally on the day. Meanwhile, in an attempt to provide impetus to the slowing economic growth, Chinas central bank cut interest rates unexpectedly as official data revealed weaker-than-expected industrial production and retail sales growth amid falling property investment. In a surprise move, the Peoples Bank of China reduced its key policy rate for the first time since January. The bank reduced the one-year medium-term lending facility by 10 basis points to 2.75 percent. The seven-day reverse repo rate was lowered to 2.0 percent from 2.10 percent.Powered by Commodity Insights