Copper Sees Steady Moves On Soaring Equities

Published on Nov 06, 2020 12:00

COMEX Copper stayed supported as US equities rallied. Markets added to their recent surge as investors kept betting Joe Biden is poised to be named president of the United States. COMEX Copper futures hit one and half week high of $3.13 per pound and now trades flat at $3.11 per pound.

Economic cues were mostly steady for Copper. The Federal Open Market Committee (FOMC) announced on Thursday that it left the benchmark interest rate, the target range for federal funds, unchanged at 0%-0.25%. The Fed reiterated that it is committed to using the full range of its tools to support the US economy and noted that the path of the economy will continue to depend significantly on the course of the coronavirus outbreak. The US initial jobless claims edged down to 751,000, a decrease of 7,000 from the previous week`s revised level of 758,000. Germany`s manufacturing new orders growth in September eased on monthly basis, figures from the statistical office Destatis showed on Thursday. Factory orders rose a seasonally and calendar adjusted 0.5% month-on-month in September. The pace of growth slowed sharply from August`s 4.9%, which was revised up from 4.5%. On a year-on-year basis, the German factory orders decreased a calendar adjusted 1.9% in September after a 1.7% drop in August. The Bank of England expanded its asset purchase programme by GBP 150 billion and retained its record low interest rate as the economy entered a second lockdown. The nine-member Monetary Policy Committee unanimously decided to raise the size of the asset purchase programme to GBP 895 billion from GBP 745 billion. The MPC also voted 9-0 to hold the interest rate at 0.10%.