LME Aluminum 3M Select trades $16.75 higher to $3061.50 at 8:44:38 AM
LME Copper 3M Select trades $-70.75 lower to $13967.50 at 8:44:39 AM
(Bloomberg) – Copper climbed as stock markets turned higher and the dollar dropped after US midterm elections that saw the Democrats sweep Congress. Benchmark three-month futures pared early losses to bounce back above $14,000 a ton in London, tracking a rebound in US equity futures after an initial selloff. Democrats won control of both chambers in a result that will leave President Donald Trump far more hemmed in than in the first two years of his second term, when Republican control of Congress left few checks on his power. Copper has had a volatile year, touching a record high in September before easing in recent weeks, as concerns over spending on artificial intelligence hurt equities and fueled fears about global growth. The initial rout in stock markets on Wednesday came as investors questioned whether a Democratic Congress will impede the development of data centers and associated infrastructure. Following the Democrats’ win, tighter scrutiny of the AI sector will continue to pressure copper despite short-term price swings, said Li Xuezhi, head of research at brokerage Chaos Ternary Futures Co. After the US vote, traders will also be focused on Trump’s potential implementation of a tariff on refined-copper imports — a possibility that has drawn vast amounts of metal into the US. The prospect of tariffs has driven up Comex copper futures over LME prices since Trump came to office, but in recent weeks the spread between the two contracts has narrowed as doubts grow about whether he’ll push ahead with the levies. The rise in the cost of living, partly associated with his import duties, was a major reason behind voter discontent. The front-month Comex-LME spread initially traded at negative levels on Wednesday, before rebounding to leave Comex trading at a premium of about $100 a ton by mid-morning in London. Copper was 0.6% higher at $14,116 a ton on the London Metal Exchange as of 10:30 a.m. local time, after earlier losing as much as 1.5%. Nickel rallied 2%, leading all metals higher on the exchange.
CME HRC Steel last traded at $1360 and $0 lower at 9:01:10 AM
