HANOI- Copper prices traded sideways on Wednesday as traders brace for a tightly contested US presidential election and await further stimulus measures from top consumer China.
Three-month copper on the London Metal Exchange (LME) was nearly subdued at $9,533 per metric ton, while the most-traded December copper contract on the Shanghai Futures Exchange (SHFE) was almost flat at 76,490 yuan ($10,722.95) a ton.
The neck-to-neck US election, due Nov. 5, will reveal how economic policies will form in the world’s biggest economy in the next four years, which could also provide clues on the impact on metals markets.
China’s top legislative body will meet on Nov. 4-8. The country is considering approving next week the issuance of more than 10 trillion yuan in extra debt in the next few years to revive its fragile economy, sources told Reuters.
Increasing tensions in the Middle East are also pushing investors towards safe-haven assets such as gold and the US dollar, and reduced risk appetite in other markets such as base metals, a metals trader said.
The dollar has been hovering around its highest levels since August, making greenback-priced metals more expensive for holders of other currencies.
