Quote on Commodity Copper : Copper prices on Monday surged by nearly 2 percent on the LME and on the MCX By Mr. Saish Sandeep Sawant Dessai, Angel One Ltd
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Below the "Quote: Commodity (Copper)" by Mr. Saish Sandeep Sawant Dessai, Research Associate: Base Metals, Angel One Ltd
Copper prices on Monday surged by nearly 2 percent on the LME and on the MCX. The up-move comes on the back of multiple factors, including a strengthened Chinese currency, a weaker U.S. dollar, and encouraging loan data from China.
The declining U.S. dollar made dollar-denominated commodities more attractive to other currency holders, potentially boosting demand. China's central bank intervened to bolster the yuan against the dollar.
New bank lending in China in August greatly surpassed expectations, nearly quadrupling from July, and annual growth in total social financing (TSF), a comprehensive measure of credit and liquidity in the economy, accelerated to 9.0%. This TSF surge, reaching 3.12 trillion yuan ($428 billion) in August, marked a substantial increase from July.
To support the economy further, potential interest rate cuts and a reduction in banks' reserve requirement ratio (RRR) are anticipated, while there are signs of economic stabilization, however, concerns persist, particularly within the property sector.
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