Copper price rises despite global economic pessimism

[Click here for an interactive chart of copper prices]

Inflation data in Germany and Japan on Friday and statements from European and U.S. central bankers this week suggest that rapid, economically damaging interest rate rises will continue.

Investors turned cautious, pushing down global equities and driving up the US dollar — pressuring dollar-priced metals by making them costlier for buyers with other currencies.

Many analysts expect recessions in Europe and the United States and slower growth elsewhere, including in China.

China, however, is widely expected to lower its benchmark lending rates on Monday and has pledged other stimulus to support its economy.

Chinese demand is unlikely to revive strongly because its property market is in crisis, infrastructure construction is not rapid enough and export demand is weak, said Julius Baer analyst Carsten Menke in a note.

“I would not bet on any further recovery (in metals prices) from here,” he said.

Read More: BHP sees copper market “take-off” by mid-2020s “if not earlier” 

(With files from Reuters)

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