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MTECHTIPS:- Copper futures rally 2%, tracking strong gains in Chinese equities

MTECHTIPS:- Copper futures rally 2%, tracking strong gains in Chinese equities

Copper futures rallied on Tuesday, as strong gains in China’s equity markets boosted sentiment. Copper for September delivery on the Comex division of the New York Mercantile Exchange hit an intraday peak of $2.364 a pound before trading at $2.360 during morning hours in London, up 4.8 cents, or 2.05%. The Shanghai Composite took investors on another volatile ride on Tuesday, rallying more than 4.5% in the last hour of trade to erase the session’s losses and end up 3%.Data released earlier showed that China’s trade surplus widened to $60.2 billion last month from $43.0 billion in July, compared to estimates for a surplus of $48.2 billion. Chinese exports slumped 5.5% from a year earlier, better than forecasts for a decline of 6.0%, while imports plunged 13.8%, far worse than expectations for a drop of 8.2%. A slowdown in domestic demand indicated a recovery in the broader economy remains fragile and may need further government stimulus. China’s copper arrivals in August totaled 350,000 metric tons, little changed from a month earlier, indicating that demand for the red metal held up despite recent market turmoil. The Asian nation is the world’s largest copper consumer, accounting for almost 40% of world consumption last year. Copper prices have been under heavy selling pressure in recent weeks as fears of a China-led global economic slowdown spooked traders and rattled sentiment. Prices of the red metal sank to a six-year low of $2.202 on August 24 as concerns over the health of China’s economy and steep declines on Chinese stock markets dampened appetite for the red metal.
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