In the face of an upcoming US-China vice-ministerial level trade talk, the investors appeared to be riant and market momentum including currencies, commodities and stocks were upbeat all over the world on Friday, the Jan.
4th, 2019. After falling in to a multi-month low on Thursday, the Jan. 3rd, the copper price rallied on Friday, on the announcement of new trade talks between US and China. Alongside, the news of cutting bank reserve requirements from Chinese government had also played a pivotal role behind this roaring rally.
Benchmark copper on the UK metal exchange was not trading on Friday, yet the price was up by 2.1 percent, which happened to be its biggest lift in 2 months. Despite riant market environment, the metal used in the constructions and power was down by 2 percent, as China failed to secure profit in their industrial sectors for the first time in three years and Chinese PMI had also faltered.
Citing the probability of a short-lived copper price rally, Robin Bhar, a Societe General Analyst, commented, “China’s easing (of reserve requirements) has managed to turn around the downtrend. But all this could retrace next week, depending on the trade talks.
If the trade dispute escalates, this rally will be short-lived”. While preparing this report, the copper price was 2.64 percent up and it was being traded at 2.6440.