The futures contracts copper closed higher this Wednesday, after renewed commitment from the China with measures in favor of the market to dampen the pessimism of the last few days due to an outbreak of covid-19 in the Asian country. Signs of progress in negotiations between Russia and Ukraine for a solution to the ongoing conflict also contributed to the good mood in business on the day of the decision of the Federal Reserve (Fed, the US central bank).
On Comex, the metals division of the New York Mercantile Exchange (Nymex), copper with delivery scheduled for May ended the session with a gain of 1.94%, at US$ 4.6005 a troy ounce. On the London Metal Exchange (LME), copper for three months rose 1.68% to US$ 10,058.00 per ton, around 2:30 pm (GMT).
According to the state-run Xinhua news agency, China’s Vice Premier Liu He said the country would adopt pro-market policies to address risks in the real estate sector. In addition, the politician said that talks with the US have advanced on Chinese companies with shares listed on US indices.
“This provides a strong signal that while markets are concerned about Chinese demand amid a spike in Covid-19 cases, Beijing may soon be able to re-energize commodity demand growth prospects,” quotes TD Securities, in a report to customers.
In an article published today, the Financial Times reports that Ukraine and Russia have advanced a plan to reach a peace agreement and end the war in Eastern Europe. The news left investors around the world optimistic and prone to risky assets such as industrial metals.
However, according to the Ukrainian government, the report reflects only the Russian side of the story. Secretary General of the North Atlantic Treaty Organization (NATO), Jens Stoltenberg, also stated that he does not want peace between Russian authorities.
Another highlight of the commodities metals today was the resumption of nickel trading on the LME, quickly suspended after the metal plummeted again. The LME claimed a “system error”, and the nickel ton ended the day down 43.01%, at US$ 45,590.00, the lowest value allowed for today’s session.
Among other metals traded on the LME, at the quoted time, the ton of aluminum dropped 0.85%, to US$ 3,271.00, that of lead was down 0.27%, to US$ 2,254.00, that of tin was down 1, 33%, at US$ 42,240.00, and zinc advanced 0.13%, at US$ 3,799.50.