SCCO - Freeport McMoRan pops with copper prices as China rate cut raises stimulus hopes

2023-06-13 08:55:46 ET

Prices for copper and other base metals move higher Tuesday after China's central bank lowered a short-term lending rate in an effort to spark its lackluster economic recovery.

The surprise rate cut from China's PBOC has raised speculation that a larger economic support package could be unveiled soon, analysts said.

The U.S. Federal Reserve also will issue its latest decision on rates this week, and the U.S. consumer price index could influence its moves.

According to Reuters, benchmark copper ( HG1:COM ) on the London Metal Exchange recently traded +1.4% at $8,427/metric ton, while LME aluminum, zinc, nickel and tin also rose.

ETFs: ( CPER ), ( NYSEARCA: COPX ), ( JJC ), ( JJCTF )

Freeport McMoRan ( NYSE: FCX ) +3.3% pre-market; other potentially relevant stock tickers include ( SCCO ), ( TECK ), ( HBM ), ( BHP ), ( RIO ), ( VALE ), ( MT )

Also supporting base metals prices, a fire overnight at Sweden's Ronnskar smelter - a major producer of copper, zinc, lead and other metals - has stopped production until further notice.

More on Freeport McMoRan:

• Financial and valuation comparison to sector peers
• Analysis: Freeport McMoRan Will Make Up A Sizable Part Of Future Energy Markets
• Stock price return: Flat YTD, up 2.5% in the past 12 months

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