China's promises of stimulus for the construction sector and plans to issue additional government debt pushed iron ore prices up more than 2 percent in the new week, ending a decline in the last eight sessions. While the Central Bank of China decided to keep benchmark lending rates unchanged, expectations of additional easing are supporting the iron ore rally.
Copper prices posted their biggest weekly gain since July on expectations of an end to Fed rate hikes amid concerns that the US economy is slowing. Investors are strengthening expectations that the Fed's tightening policies will end as US data show economic weakness.
Copper prices rose 2.9 percent last week to $8,333 a ton on the London Metal Exchange. These developments indicate that the volatility in commodity markets will continue due to China's incentives and the Fed's policy changes.