Copper Extends Rebound on Hopes for US Rate Cuts, China Stimulus

(Bloomberg) -- Copper rose for a third day, extending its rebound from a two-month low, as investors weighed possible stimulus measures in China and interest-rate cuts in the US.

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Federal Reserve Chair Jerome Powell on Tuesday said the latest economic data suggest inflation is getting back on a downward path. Still, he cautioned that officials would like to see more evidence before lowering borrowing costs and declined to give any specific guidance on the timeline for cuts.

Copper has also been supported by hopes of some boost to growth from China’s Third Plenum policy meeting later this month, the Chaos Ternary Research Institute said. Expanding global inventories and weak Chinese demand helped pull copper prices down from a record of more than $11,100 a ton set in May.

The metal’s nudge higher comes alongside a recent jump in withdrawals from London Metal Exchange warehouses in Gwangyang, South Korea.

Copper gained 0.7% to $9,701 a ton by 3:45 p.m. on the LME. Other base metals were mixed, with nickel edging lower and aluminum rising slightly.

--With assistance from Thomas Biesheuvel.

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