Copper prices tripped and other base metals played hide-and-seek, as traders anxiously twiddled their thumbs in anticipation of a Chinese central bank rendezvous on Tuesday. At this high-powered finance fiesta, officials are widely expected to slash interest rates like coupons to boost their economy, which has been feeling a bit under the weather after a string of not-so-impressive data releases.
As whispers of the upcoming tea party circulate, the ever-trendy metal, copper, went into a slight panic and just couldn’t keep its act together. It slipped 0.1% to $6,462 a metric ton—much to the dismay of its fellow base metals, such as aluminum and zinc, who were busy trying to hold their own. They managed to do just that, keeping a balance between good hair days and bad. But the inconsistent nature of the other metals only added an extra layer of anxiety to an already nail-biting situation.
Like teenagers waiting for their crushes to call, traders are placing all their bets on China’s central bank to maybe — just maybe — give their economy some much-needed TLC. After all, China’s manufacturing sector has been shrugging its shoulders lately, making the global audience raise an eyebrow and wonder if their growth forecasts are still accurate. China, however, remains determined to prove that they’re not going through a fluke, and are genuinely committed to their 2021 growth target.
As the clock ticks down to the central bank’s tea-date, economists are waiting with bated breath to see whether the Chinese officials are willing to take the plunge and cut interest rates dramatically. If they do, copper and its cache of base metal buddies should take a cue and put on their dancing shoes, ready to celebrate in the world of stable prices. On the flip side, if the meeting turns out to be a mere gossip session followed by empty promises, the great copper slip-n-slide may continue — and the world will keep holding its breath, waiting for the next move in the global game of economy Twister.
