FX.co ★ Copper Falls as Markets Weigh Trade Developments

Copper futures declined by over 1% to under $4.70 per pound on Wednesday, reversing the gains seen in the previous session as investors evaluated shifting global trade dynamics. Recent reports indicate that Chinese Vice Premier He Lifeng will meet with U.S. Treasury Secretary Scott Bessent in Switzerland later this week to discuss trade issues, fostering optimism for the potential commencement of tariff negotiations. Despite the People's Bank of China's decision to reduce key policy rates to bolster growth amid U.S. tariffs, copper prices still fell. The metal faced additional pressure from disappointing manufacturing PMI results from major economies, indicating weaker demand. Furthermore, copper inventories increased in North American warehouses as U.S. manufacturers began stockpiling in anticipation of potential new tariffs, exerting further downward pressure on prices.