The Fed cut interest rates by half a percentage point on Tuesday to protect the world’s largest economy from the impact of the global coronavirus epidemic, which has led to large sales in US dollars.
Three-month copper on the London Metal Exchange (LME) rose 1% to $ 5,725.50 a tonne, but fell to $ 5,713.50 a tonne at 0707 GMT.
Meanwhile, the most active copper contract on the Shanghai Futures Exchange (ShFE) closed down 0.8% at 45,090 yuan ($ 6,500.30) per ton.
“The fact that the Fed has lowered emergency rates has confirmed a high downside risk to the global economy. The question of whether lower rates can stimulate the economy is still a question,” said said Yu Xiaojiang, analyst at Anglo American.
“Ultimately, we need a return request, which will take time to recover, and not so soon, I believe,” he added.
FUNDAMENTALS
SERVICES IN CHINA: The impact of the epidemic in China is still being felt in the world’s No. 2 economy, its services sector posting the worst month ever on February, new orders having fallen to the lowest since the crisis financial world.
VIRUS: The World Health Organization has warned of a global shortage and rising prices for protective equipment against the coronavirus, which has spread to around 80 countries and infected around 91,000 people.
ECB: The European Central Bank is preparing possible measures to provide liquidity to companies affected by the economic fallout from the outbreak, sources told Reuters.
PRICE: LME aluminum was virtually unchanged at $ 1,721.50 a tonne and nickel advanced 1.3% to $ 12,725 a tonne, while LME zinc increased 1.2% to 2 $ 000 per ton.
SHFE PRICE: ShFE aluminum fell 0.7% to 13,130 yuan per tonne, while ShFE zinc fell 1.1% to 15,940 yuan per tonne.