Copper erased daily losses of as much as 1% after pledges of additional support for China’s troubled real estate industry propped up sentiment in industrial metals markets as demand headwinds swirl.
(Bloomberg) — Copper erased daily losses of as much as 1% after pledges of additional support for China’s troubled real estate industry propped up sentiment in industrial metals markets as demand headwinds swirl.
The Communist Party’s 24-member Politburo — the top decision-making body led by President Xi Jinping — vowed to adjust policies for the property sector at a key economic planning meeting. It also called for actively expanding domestic demand and effectively preventing and resolving debt risks, according to a readout of the gathering published Monday by the official Xinhua News Agency.
Investors have been waiting for Chinese leaders to spell out their strategy for countering the nation’s growth slowdown, with real estate flagged as the sector in greatest need of aid. Yet analysts aren’t hopeful for any big-bang stimulus as this week’s Politburo meeting gets underway.
Industrial metals have retreated from a peak in the first quarter as global growth concerns damped the demand outlook. Both copper and iron ore declined last week amid concerns about slowing demand in China and other major industrial economies, as well as gains in the dollar that made them more expensive for many buyers.
There also were fresh signs of pressure in Europe’s industrial economy Monday as a gauge of regional manufacturing output slumped more than forecast, hitting its lowest level since the early months of the Covid-19 pandemic.
A US manufacturing gauge beat estimates but still pointed to a contraction in activity.
Copper closed 0.8% higher at $8,517 a ton on the London Metal Exchange after falling 2.6% last week. All base metals rose, with nickel pacing gains with a 3.2% increase.
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