FX.co ★ Copper Falls as China Delays Immediate Stimulus

Copper futures dipped below $4.82 per pound on Monday, continuing their decline from the prior session. This movement came after China, the world's largest consumer of copper, expressed confidence in reaching its projected economic growth of around 5% for the year. However, China opted against implementing immediate stimulus measures. Instead, Chinese officials indicated an intention to introduce new pro-growth policies in the second quarter. This approach suggests a strategy of evaluating the timing and impact of trade disruptions before committing to potent interventions. In a parallel development, US President Donald Trump last week showed a willingness to reduce tariffs on Chinese imports, while Beijing temporarily waived certain 125% tariffs on American products. Meanwhile, uncertainty prevails over whether copper might become a target of potential future US trade restrictions, contributing to further market volatility.