LONDON: Copper prices were steady on Wednesday, as traders found comfort in prospects that US interest rates have hit a peak and China will unleash more economic stimulus.
Three-month copper on the London Metal Exchange was up 0.1% at $8,028 per metric ton by 1615 GMT after a 1% decline in the previous session. US bond yields have dropped from their highest levels since 2007 as Fed officials have hinted that rate hikes are over.
“In the short term, the drop we’re seeing in bond yields in the US is providing support to markets in general and also to metals,” said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen. “We’re certainly keeping an eye on China to see if they’ll spring a few surprises in terms of adding more stimulus.”
A Bloomberg report said China was preparing a new round of stimulus to help its economy.
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