Copper price up on hopes of further monetary easing in China

The copper price regained some strength on Thursday after consecutive losses, as weaker-than-expected economic data from top consumer China raised hopes the country would implement further monetary easing to prop up growth.

China’s gross domestic product expanded 7.9% year-on-year in the second quarter, missing expectations of an 8.1% rise in a Reuters poll, due to slowing manufacturing activity, higher raw material costs and new covid-19 outbreaks.

The bleak data came amid market speculation of further monetary easing after China’s surprising cut of banks’ reserve requirements last week. Some market watchers say a cut in the country’s benchmark prime loan rate may be next.