Copper and other base metals rose Tuesday after China approved new fiscal measures to bolster its economy.
Front-month copper for July delivery climbed 2.3% to $2.80 a pound on the Comex division of the New York Mercantile Exchange, its best day since April 18. Prices have fallen 15% since hitting a four-year high in late June, hurt by worries that a trade spat between the U.S. and China would hurt the Chinese economy and lower commodity demand. China is the world’s largest consumer of industrial metals used for construction.
Other industrial metals that have slid recently, including aluminum, zinc and nickel, rose on the London Metal Exchange.
The rebounds came after China’s cabinet, the State Council, unveiled measures to boost domestic consumption amid economic pressure from escalating trade friction with the U.S. The news also lifted shares of Chinese companies that have fallen on worries about an economic slowdown, and analysts said momentum carried over to the metals market.