Copper futures was seen rising on Wednesday, trading near a one-week high after a report showed that China’ central bank’s supported boosting the economy growth by injecting neatly $82 billion into five of the nation’s biggest banks.
The People’s Bank of China (PBOC) will funnel 500 billion yuan into five of the country’s biggest banks, according to reports. Meanwhile, in the US, the Federal Reserve is expected to a release a policy statement following its two-day policy meeting.
Copper futures for the delivery in three months rose 0.5% higher to $6.936 a metric ton at the time of writing on the London Metal Exchange. While the contract for December delivery slid 0.5% lower to $3.149 a pound on the Comex in New York.
Copper stockpiles monitored by the London Metal Exchange lost 0.6% to 155,400 tons, according to data. Orders to take the metal from warehouses dropped by 2.4% t0 39.025 tons.
On Tuesday, the Chinese banks stimulus boosted copper futures as high as 4.1%, the largest intraday increase since May 2013. China is the world’s largest consumer and accounts for almost 40% of global demand. However, despite the recent boost from the Chinese stimulus, copper is expected to slightly fall in late 2014 and 2015.
Free Reports:
“We’re modestly bearish on copper for the fourth quarter. The driver for that is that there’s a bit of supply surge that’s happening in 2014 and 2015,” said analyst Daniel Morgan of UBS.
Meanwhile, futures for Gold for December delivery rose 0.14% higher to trade at $1,238.40 per troy ounce. Silver for immediate delivery edged 0.4% lower to $18.6405 an ounce and Platinum was traded flat at $1,367 an ounce.
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