Metals mixed on China’s economic outlook, global virus surge
BNN Bloomberg
Base metals are mixed as investors try to gauge the outlook for the Chinese economy amid slowing growth and the potential for stimulus next year, while omicron infections raise globally.
Base metals are mixed as investors try to gauge the outlook for the Chinese economy amid slowing growth and the potential for stimulus next year, while omicron infections raise globally.
Copper rose as much as 1.4 per cent reaching the highest in a month on Wednesday, while aluminum declined as much as 1.8 per cent after London trading re-opened following two-day break. Nickel advanced 0.4 per cent by 10:22am London.
China’s economy expanded at a moderate pace in December on better business sentiment, although a slump in the property sector and weakening external demand continue to cloud the outlook, according to Bloomberg’s aggregate index of eight early indicators for this month. Property accounts for large proportions of demand for base metals and steel.
At the same time, to counter the slowdown, China is likely to add stimulus to stabilize growth next year. The People’s Bank of China is set to use monetary policy tools to ensure liquidity, while the finance ministry has said it will roll out fiscal policies.
In the latest virus developments, the COVID-19 omicron variant is pushing worldwide COVID-19 cases above 1 million for a second straight day.
