FX.co ★ Iron Ore Hits Over 3-Month High on China Stimulus Hopes

Iron ore futures surged past CNY 775 per tonne on Wednesday, marking their highest point in over three months. This rise was fueled by increasing optimism around possible stimulus measures from China, the major global consumer of iron ore, which has positively impacted demand expectations. Investors are closely watching the forthcoming Politburo meeting, anticipating the announcement of economic policies that will guide the rest of the year. This anticipation has been bolstered by data released on Tuesday, indicating that China's economy grew by 5.2% year-on-year in the second quarter. While this figure slightly exceeded forecasts, it showed a modest decline from the 5.4% growth seen in the preceding two quarters. Additionally, a decline in port inventories and improved profit margins in steel mills have reinforced a brighter outlook for iron ore consumption.