New York, October 19 news, COMEX copper prices rebounded on Friday, after the Chinese Vice Premier Liu He and the leaders of the two delegations concentrated their calls to soothe the market anxiety.
COMEX October copper futures contract rose 0.0305 US dollars, or 1.1%, to close at 2.7680 US dollars per pound, ending the five-day decline.
The most active December contract rose $0.0315 to close at $2.7780 per pound.
Concerns about the weakening demand for raw materials commonly used in construction and manufacturing around China’s economic slowdown and trade disputes have dragged down copper prices by more than 16% from the four-year highs mentioned in June.
China’s National Bureau of Statistics announced on Friday that China’s GDP in the third quarter increased by 6.5% year-on-year, the growth rate fell to a nine-and-a-half-year low, and the industry weakened. The investment in infrastructure and manufacturing industries dragged down the growth rate of overall fixed asset investment, and consumption did not show any significant improvement.
Chinese Vice Premier Liu He said on Friday that the recent stock market volatility and decline were caused by many factors. The bubble has been greatly reduced. It can be said that the adjustment and clearing of the stock market is creating good investment opportunities for long-term healthy development. Meanwhile, China The government will deepen reform and opening up and there is no reason not to have full confidence in the broad prospects for China’s economic development.
China’s “one line and two meetings” high-level attitudes have eased market tensions. The central bank governor Yi Gang said that the recent stock market volatility is mainly affected by investor expectations and sentiment. Overall, the current stock market valuation has been at a historically low level, which is in contrast to China’s stable economic fundamentals. The central bank is also studying the introduction of targeted measures to alleviate corporate financing difficulties.
Liu Shiyu, Chairman of the China Securities Regulatory Commission, and Guo Shuqing, Chairman of the China Insurance Regulatory Commission, will continue to express a number of measures to stabilize stock market confidence in the morning, including the CSRC’s encouragement of local governments to manage various funds, qualified private equity funds, and brokerage products, respectively. The new fund will help listed companies with development prospects but temporarily fall into operational difficulties to solve the stock pledge dilemma; the China Insurance Regulatory Commission will allow insurance products to set up special products to participate in the liquidity risk of listed companies’ stock pledge.
Benefiting from the Chinese Vice Premier Liu He and the leaders of the two delegations, the stock market uneasiness eased slightly. The Shanghai Composite Index closed up 2.6% on Friday, the biggest one-day gain in nearly two and a half months. The Shanghai and Shenzhen 300 Index rose 2.97%.
The base metals market has also been boosted.
A senior analyst at Macquarie Bank said that infrastructure construction data and strong construction start-ups are positive for the market.
Copper prices are often fluctuated by the market’s impact on China’s economic growth, with China accounting for about 50% of global copper demand. Copper prices were dominated by macro market volatility this week.
Investors have become increasingly uneasy in recent weeks due to factors such as rising US Treasury yields, trade war concerns and global economic growth.
Analysts at Commerzbank said in a report that the slowdown in China’s economic growth reflects that “trade disputes with the United States may begin to have an impact.”