The price of copper went up on Thursday after being close to a two-week low. It increased by 1.1% to reach $4.44 per pound in early trading on the Comex in New York. This rise comes as people are eagerly waiting for China’s policy announcement this weekend.
Investors are keeping an eye on China’s plans for infrastructure investment and other policies that could potentially boost demand for commodities like copper. Finance Minister Lan Fo’an is scheduled to speak on Saturday, and this event is crucial in understanding the government’s commitment to capital spending.
Analysts from ANZ Group Holdings believe that the People’s Bank of China’s support for equity markets could have a positive impact on commodity markets. They also mentioned that a stable real estate sector and stronger equity markets might improve consumer sentiment, leading to increased demand for commodities.
ING analysts are expecting a fiscal stimulus effort in the near future and have raised their growth forecast for 2025 to 4.8% year-on-year. This increase is based on the anticipation of stronger policy support from the government.
Overall, the market is closely watching China’s policy briefing to gauge its impact on commodity demand. The outcome of this announcement could have significant implications for the price of copper and other commodities in the coming weeks and months. Investors are hopeful that the government’s actions will lead to increased economic activity and a surge in demand for copper.
