FX.co ★ Copper Set for Weekly Drop

Copper futures stabilized around $4.95 per pound on Friday, though they remained poised for a weekly decline due to a global wave of risk aversion affecting financial markets. This week, global equities and other risk-sensitive assets faced pressure amid growing worries about inflated valuations in the AI sector and disappointing economic data from the US. Additionally, the continued US government shutdown contributed to a heightened sense of caution. In China, weak trade statistics further influenced prices, as October saw a surprising 1.1% drop in exports and a marked slowdown in import growth to 1%. Concurrently, speculation increased regarding the possibility of Beijing targeting the copper refining sector in its campaign to address overcapacity. In a related development, China's nonferrous metals association recently called on the central government to implement stricter regulations on new copper smelting ventures, a measure that could ultimately bolster prices.