Copper rises cautiously on hopes for US-China trade talks
Bellwether metal on the rebound from 2018 lows
Copper prices rose cautiously in anticipation of the trade talks to be held in Washington on Friday. Standing at $5,772.33 (£4677.55) a tonne on the London Metal Exchange (LME) at 18:00 GMT, copper was up 2.16%.
With President Trump meeting with Vice Premier Liu He on Friday October 11, hopes are high for a US China trade deal.
The trade talks are set to take place despite some thorny issues, including the US having blacklisted 28 Chinese entities over human rights violations. The two countries have also been increasing tariffs on each other’s imports since July 2018.
But while Reuters reported earlier in the week that the chances of a resolution in the trade debate between China and the US was unlikely, things may be picking up with talk of China and the US reaching a partial trade deal.
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President Trump has recently tweeted that he will be having a ‘big day of negotiations with China’ while Vice Premier Liu has told state-run media Xinhua that China carries ‘great sincerity’ for the talks.
Copper is seen as a bellwether of global growth. It is widely used in construction, electrical and electronics sectors, including circuit boards for mobile phones. While copper prices fell sharply in 2018, they have rebounded somewhat in 2019 and a US China trade deal would boost prices further.