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Copper recovers from Monday's selloff as China moves to calm markets

Published 05/01/2016, 07:07 pm
Updated 05/01/2016, 07:14 pm
© Reuters.  Copper recovers from Monday's selloff
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Investing.com - Copper prices recovered from the prior session's selloff on Tuesday, as sentiment improved after China's central bank attempted to buoy markets with a $20 billion cash injection.

The People's Bank of China flooded its banking system with 130 billion yuan, or $19.95 billion, marking the largest cash injection since September.

The move comes one day after a 7% plunge in Chinese stock markets, which rocked global financial markets and revived concerns about the country's economic slowdown.

Copper for March delivery on the Comex division of the New York Mercantile Exchange inched up 2.9 cents, or 1.41%, to trade at $2.111 a pound at 8:04GMT.

A day earlier, copper plunged 5.5 cents, or 2.6%, as the release of weak Chinese manufacturing activity data and steep declines on China's stock market rattled sentiment.

The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.

Elsewhere in metals trading, gold prices held steady near a four-week high as investors sought refuge amid instability in the Middle East and fresh concerns over global growth.

The yellow metal surged on Monday, as investors reacted to a move by Saudi Arabia to cut commercial ties with Iran, fueling concerns over geopolitical instability in the Middle East.

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