Metals mixed after weekly slump as China cuts short-term rate

Metals were mixed following the worst weekly slump in almost two years, with a rate cut in China helping to prevent further declines.

The LMEX Index, which tracks six base metals, plunged 5.6% in London last week, as copper extended its retreated from a record high in May on alarm over weak Chinese demand and rising global inventories.

Those concerns were partially assuaged on Monday as China’s central bank cut a key short-term policy rate for the first time in almost a year, in a bid to spur growth. The dollar also slipped after US President Joe Biden ended his reelection campaign, making commodities cheaper for many buyers.

Zinc rose 0.4% to $2 786.50 a ton on the London Metal Exchange as of 12:30 p.m. in Shanghai. Tin was up 0.3%, while copper declined 0.2% and aluminium fell 0.4%. Iron ore dropped 0.3% to $104.25 a ton in Singapore.

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