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.
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.
Tokenised securities are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how tokenised securities and leverage work and whether you can afford to take the high risk of losing your money. Nothing in the above article should be regarded as a recommendation to trade generally, to trade on a particular platform or to trade in a particular asset. Asset prices can go down as well as up and past performance is not a guide to future performance. Investors and traders should thoroughly research an asset or strategy before making any trading or investment decision and if necessary seek professional advice.