Copper Stays Supported, MCX Futurtes Up 1%

20 May 2022 , 05:24 PM

COMEX Copper stayed largely supported on firm equities and hopes of a surge in Chinese demand. Asian equities enjoyed decent buying after China rate cut. European markets saw good gains. Major indices in Europe are up more than 1%. Chinese banks cut a key interest rate for long-term loans by a record amount, a move to reduce mortgage costs and boost weak loan demand amid a property slump and Covid lockdowns. The five-year loan prime rate, a reference for home mortgages, was lowered to 4.45% from 4.6%, down by the most since a revamp of the rate in 2019, according to a statement by the Peoples Bank of China. The one-year loan prime rate — the de facto benchmark lending rate — was kept unchanged at 3.7%. This rate cut boosted appetite for Copper too and the red metal currently trades up 0.56% at $4.30 per pound. MCX Copper is trading at Rs 776.90 per kg, up 1% on the day. Powered by Commodity Insights