Iron ore rebounds

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BEIJING- Iron ore futures recovered on Thursday, as Donald Trump winning the US presidential election heightened hopes that top consumer China would unveil stronger stimulus measures this week to offset any negative impacts of a potentially wider trade war.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.15 percent   higher at 792 yuan ($110.42) a metric ton.

The benchmark December iron ore contract on the Singapore Exchange was 0.44 percent   higher at $104.4 a ton.

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Trump’s comeback to the White House, with more than the 270 Electoral College votes needed to win the presidency, sparked concerns over a wider trade war that could hit metals consumptions, with the metals complex recording broad losses on Wednesday.

The president-elect has also threatened to impose a 60 percent   blanket tariff on imports of Chinese goods to boost US manufacturing.

China’s National People’s Congress Standing Committee is meeting over Nov. 4-8, with traders focusing on keenly-watched directions from long-awaited fiscal stimulus measures. “If a strong fiscal stimulus policy is implemented, coupled with the realization of the infrastructure rush and replenishment ahead of the year-end, the short-term policy stimulus and marginally improved fundamentals are expected to resonate, supporting prices,” analysts at Jinrui Futures said in a note. 

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