Copper Continues Rebound Alongside Chinese Stocks

Charles Beckett eventually bought out the other stockholders, including his father, and managed the company until his death in 1960. His daughter, Jo Ann Dixon, continued to manage the company until her sons, Steve and Leon Dixon, joined the company in the early 1970’s.


Copper and other industrial metals advanced Monday, with sharp gains across Chinese equities indexes fueling a continued rebound.

Copper for December delivery rose 0.7% to $2.7980 a pound on the Comex division of the New York Mercantile Exchange, climbing for the second straight session. Worries about an economic slowdown in China, which accounts for about half the world’s consumption of copper and other metals used heavily in manufacturing and construction, have sent prices down about 15% from their June four-year highs and also hurt Chinese stocks.

But Chinese stocks soared Monday after the country’s government announced proposals to cut personal income taxes over the weekend. That followed soothing remarks from Chinese officials Friday about the health of the world’s second largest economy, after the release of figures showing a deceleration in its expansion in 2018’s third quarter.

Analysts said the sharp Monday rally in Chinese stocks, with the Shanghai Composite adding 4.1% for its largest one-day advance since March 2016, spilled over to metals markets.

Copper for December delivery rose 0.7% on the Comex division of the New York Mercantile Exchange, climbing for the second straight session.

Copper for December delivery rose 0.7% on the Comex division of the New York Mercantile Exchange, climbing for the second straight session. Photo: Andrey Rudakov/Bloomberg News

“The Chinese government saying it’s prepared to stimulate the economy if need be could be a reason for this strength across the complex,” said Geordie Wilkes, an analyst at Sucden Financial Research.

Still, some analysts remain worried that the trade fight between the U.S. and China could further slow consumption of raw materials.

Elsewhere in base metals, aluminum for delivery in three months added 0.4% to $2,011.50 a metric ton on the London Metal Exchange. Zinc rose 1% to $2,651.50, tin was up 0.3% at $19,235, nickel added 0.6% to $12,530 and lead climbed 0.7% to $2,006.

In precious metals, gold for December delivery edged down 0.3% to $1,224.70 a troy ounce, hurt by a stronger dollar that makes commodities denominated in the U.S. currency more expensive for overseas buyers. Recent stock-market volatility has helped gold trim some of its 2018 losses by boosting demand for haven assets, but some analysts expect higher Treasury yields and the dollar’s strength to limit price gains moving forward.

Most-active silver futures fell 0.4% to $14.590 a troy ounce, while platinum dropped 0.9% to $828.60 and palladium climbed 2.1% to $1,092.50.

Write to David Hodari at David.Hodari@dowjones.com and Amrith Ramkumar at amrith.ramkumar@wsj.com


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