Copper rises due to Chinese influence

Metal prices soared on Monday, driven by news from the US and China.

According to the reports of the China Securities Journal and Shanghai Securities News, after China lowered the 1-year main loan rate from 3.85 to 3.80 on Monday, Chinese banks are expected to further reduce this rate. The discount move indicates that more monetary support may be provided in the future for the Chinese economy, which is struggling with problems such as the rapid spread of the Omikron variant, weakening in private consumption and the real estate sector, which signals collapse.

In the US, on the other hand, the Fed is preparing to increase interest rates, which are close to zero, in order to restrain the highest inflation in the last 40 years. Economists predict that in 2022, the Fed will end its asset purchase program as planned and carry out its plans to raise interest rates three times.

In a note passed by Jinrui Futures Co., he noted that monetary policy easing in China may come sooner than expected after the Fed brought forward its interest rate hike expectations.

Copper rose 0.5 percent to $9,494 per ton on the London Metal Exchange.