China Stimulus Speculation Could Help Copper Futures

Bloomberg reported that copper futures may rise again this session due to speculation that China will ramp up fiscal spending after an eight-month low was measured in manufacturing.

According to the publication:

The measure fell to 48 in March, the lowest since July, HSBC Holdings Plc and Markit Economics said today. A separate official gauge rose to 50.3 from 50.2. Readings above 50 signal growth. The China Securities Journal said in a commentary that the nation, the world’s biggest consumer of industrial metals, may expand fiscal spending to spur demand. In the first quarter, copper prices slumped 11 percent, the most since 2011.

Copper futures for May delivery rose 0.1 percent to $3.029 a pound at 11:17 a.m. on the Comex in New York. Yesterday, the price reached $3.05

Adam Klopfenstein, a senior market strategist at Archer Financial Services, told Bloomberg:

The stimulus story is perking up copper.

Also, some buyers are returning after the sharp drop in prices.

Click here to read the full Bloomberg article.